Former Bell Potter adviser jailed
A former Bell Potter Securities adviser has been jailed for one year after his original suspended sentence was quashed following an appeal.
An investigation by the Australian Securities and Investments Commission (ASIC) found Lawson Donald had dishonestly used his position as an employee of Bell Potter to gain advantage for himself or someone else by rebooking share trades, or transferring them from one client account to another.
In April this year, Lawson pleaded guilty to dishonest conduct involving more than $1.7 million, receiving a suspended jail term after entering a good behaviour bond.
However, the Commonwealth Director of Public Prosecutions appealed the sentence on the basis that it was manifestly inaccurate.
The NSW Court of Criminal Appeal sentenced Donald, a former first-grade captain at Sydney's Randwick District Football Club and Australian Barbarians player, to two years in prison to be released after one year.
"The [original] sentence failed to reflect the gravity of the offence and failed in particular to serve as an effective deterrent to other similarly intelligent, competitive professionals in the financial markets," the court said.
"It has also been repeatedly observed that the real bite of general deterrence takes hold only when a custodial sentence is imposed ... notwithstanding judicial statements to the effect that a suspended sentence is a sentence of imprisonment, the community (including those in 'white collar' occupations) might be justifiably forgiven for thinking that an offender who is serving a bond in the community has escaped meaningful punishment."
ASIC commissioner Greg Tanzer said the Australian financial system relied on gatekeepers like advisers doing the right thing to ensure investors are confident when they participate in the market.
"This sentence recognises the seriousness of Donald's conduct and will serve to deter others from engaging in similar behaviour," Tanzer said.
Recommended for you
Digital advice tools are on the rise, but licensees will need to ensure they still meet adviser obligations or potentially risk a class action if clients lose money from a rogue algorithm.
Shaw and Partners has merged with Sydney wealth manager Kennedy Partners Wealth, while Ord Minnett has hired a private wealth adviser from Morgan Stanley.
Australian investors are more confident than their APAC peers in reaching their financial goals and are targeting annual gains of more than 10 per cent, according to Fidelity International.
Zenith Investment Partners has lost its head of portfolio solutions Steven Tang after 17 years with the firm, the latest in a series of senior exits from the research house.
