Former financial adviser jailed for six years
The Australian Securities and Investments Commission (ASIC) has announced that former financial adviser and director of Australian financial services licensee (AFSL) CFS Private Wealth, Graeme Miller, has been sentenced to six years’ imprisonment for dishonest conduct, including misappropriating $1.865 million of client funds.
Acting Judge Woods of the Downing Centre District Court described Miller’s conduct as a “Ponzi scheme” which involved a “significant breach of trust” and a “cruel and deceitful betrayal inevitably leading to financial disaster”.
In April 2020, Miller pleaded guilty to six counts of engaging in dishonest conduct and the charges related to 10 of his clients whom he had encouraged to transfer between $50,000 and $950,000 by way of an investment for the benefit of the client. However, Miller misappropriated those funds for his own purposes, with four counts being related to funds he had invested through self-managed superannuation funds (SMSFs) held by his clients, the regulator found.
Of the $1.865 million of client funds that were misappropriated by Miller:
- $987,000 was transferred to bank accounts and credit cards held by Miller and his family members;
- $318,500 was used to pay dividends, interest or return of capital to other clients in relation to their investments with Miller;
- $135,000 was used to pay other personal and business expenses; and
- $27,000 was withdrawn in cash or transferred overseas.
In January 2019, the Federal Court banned Miller from providing financial services for 25 years, and disqualified him from managing corporations for three years.
“As a financial adviser Miller ought to have protected the interests of his clients. His sentencing should send a strong message that such conduct will lead to individuals involved being brought before the court to face criminal charges,” ASIC’s deputy chair, Daniel Crennan QC said.
Miller would be eligible for parole after serving four years.
The Commonwealth Director of Public Prosecutions prosecuted the matter after a referral from ASIC.
AUTHOR
Oksana Patron
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
