Fake Facebook IPO deal sees NSW-man permanently banned
A NSW-man has been permanently banned from providing financial services after he was found to have misled clients into believing he could provide them with "exclusive access" Facebook's initial public offering (IPO).
The Australian Securities and Information Commission (ASIC) found that in 2012 Ishan Seenar Sappideen of Bellevue Hill, NSW, had "dishonestly induced investors to invest $500,000 with him", by claiming to be able to access the social media network's IPO.
However, an ASIC investigation found that Sappideen did not use the funds for the deal involving Facebook, which the regulator said "never existed".
ASIC reported that at the time of the conduct, Mr Sappideen did not hold an Australian financial services (AFS) licence and was an authorised representative of an AFS licensee.
The investigation also found that in 2012 and 2013, Sappideen falsely represented that he made a number of investments in a Chicago-based futures merchant, Advantage Futures LLC (Advantage).
ASIC found Sappideen had created a number of false emails and trading statements purporting to be from Advantage. One of the false statements purported to show an account with a market value worth over $3 billion.
However, ASIC found Sappideen had only held one account with Advantage, and during the life of the account it had only received total deposits of approximately US$200,000.
ASIC found that Sappideen was not of good fame or character.
AUTHOR
Nicholas O'Donoghue
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