Former Brisbane adviser found guilty of $5.9m fraud
A former Brisbane financial adviser has been found guilty of 28 counts of fraud.
Ben Jayaweera, a former financial adviser and director of Growth Plus Financial Group Pty Ltd, was found guilty of six charges of fraud contrary to section 408C(1)(e) Criminal Code Act 1899 (Qld) on 23 August in the Brisbane District Court.
Growth Plus is now in liquidation.
The six counts on the indictment related to 28 transactions affecting 12 clients. The offending took place between August 2013 and November 2015, resulting in a total detriment of $5,958,870 to 12 of his former clients.
A jury delivered the guilty verdict on all 28 counts on the indictment, following a three-week retrial of the case.
He had originally been sentenced to 12 years’ imprisonment for the case back in October 2019 with a minimum of six years to be served before becoming eligible for parole. He then appealed the case in November 2019 which was heard by the Queensland Court of Appeal in November 2021; the conviction was quashed and a retrial was ordered in June 2022.
At the time, the Court of Appeal allowed the appeal on grounds including that deficiencies in the trial judge’s directions to the jury resulted in a miscarriage of justice.
ASIC alleged he induced various investors to transfer funds through his company Growth Plus Financial Group. This included funds from clients’ self-managed superannuation funds for investment into an unregistered managed investment scheme, known as the Australian Diversified Sector Income Fund (ADSIF).
Jayaweera claimed ADSIF was a diversified fund investing in cash, property, shares, aquaculture and agriculture when the only investment was a single project – an abalone farm in South Australia operated under his control.
ASIC also alleged Jayaweera invested some clients’ superannuation funds into ADSIF without their knowledge or permission.
The matter was prosecuted by the Office of the Director of Public Prosecutions (Cth) (CDPP) following an investigation and referral by ASIC.
Jayaweera has been remanded in custody ahead of sentencing on Monday, 26 August 2024.
AUTHOR
Laura Dew
Recommended for you
ASIC has banned a Queensland adviser from providing financial services for five years after failing to provide appropriate advice that was in the best interest of his clients.
Minister for Financial Services, Stephen Jones, has said it is not a “backdoor attempt” by the government to allow the new class of adviser to provide full advice.
The financial advice industry has seen a net loss after 10 consecutive weeks of net growth in adviser numbers, according to Wealth Data.
Only 11 per cent of financial advice practices have said they are including crypto products on their approved products lists, according to CoreData.
