Former adviser sentenced to eight years jail

By George Liondis

A FORMER Sydney financial adviser who stole $1.7 million from clients will spend up to eight years in jail.

John Michael Higgins, who worked from Richmond in Sydney’s north-western outskirts, was sentenced late last month in a NSW District Court after pleading guilty to 15 counts of fraudulently misappropriating client funds and three counts of dishonest conduct.

The court set a non-parole period of five years.

The Australian Securities andInvestments Commission (ASIC), which had permanently banned Higgins from providing financial services in 2003, said the heavy sentence was a warning to other dishonest advisers that they would be caught and punished.

Higgins, a director of Macquarie Towns Financial Services, held proper authorities from four different dealer groups — Apogee, Financial Wisdom, Matrix PlanningSolutions and Garrisons — between 1995 and 2002.

Between December 1999 and July 2002, he defrauded nine clients of $1,702,527.11. Higgins’ clients believed the funds were being placed into legitimate investments or term deposits. However, he used the money to meet his own business and personal expenses.

ASIC acting chairman Jeremy Cooper said Higgins had been punished for abusing clients’ trust.

“Mr Higgins’ clients were seeking advice about how to invest their money to secure their financial futures and like all people, they had a right to feel that the guidance and information they were receiving was genuine,” he said.

ASIC began proceedings against Higgins in August 2002, when it obtained an injunction restraining him from providing financial product or service advice. The permanent ban followed a year later in June 2003.