Former NSW director charged with dishonest conduct
A former director has been charged with dishonest conduct in relation to a financial product or service.
Russell Sandiford of Rockdale, New South Wales, was a director at Reiwa-Capital Pty and had been subject to an investigation by the Australian Securities and Investments Commission (ASIC).
ASIC alleged that he obtained $459,489.70 from 79 clients between 3 January 2020 and 20 June 2022 which was used for his own benefit rather than for investment purposes as had been agreed with his clients.
At the time of offending, he was not licensed to provide financial product advice.
The maximum penalty for engaging in dishonest conduct in relation to a financial product or financial service in the course of carrying on a financial services business was 15 years imprisonment or the greater of $945,000 or a fine of three times the total value of the benefits, or both.
He appeared in the Downing Centre Local Court in Sydney on 21 March and the matter was adjourned to 18 April, 2023 for further mention.
The matter was being prosecuted by the Commonwealth Director of Public Prosecutions following a referral from ASIC.
AUTHOR
Laura Dew
Recommended for you
The Compensation Scheme of Last Resort says it has received over 200 claims for compensation relating to personal financial advice since its inception and detailed the specific recurring issues being raised by claimants.
Two financial advisers have shared with Money Management why they opted to specialise in certain client niches when setting up their own business.
Insignia Financial has reached a major milestone in completing the separation of MLC Wealth from NAB, having acquired the firm back in 2021.
There could be changes ahead for how ASIC requires licensees to handle conflicts of interest as the corporate regulator announces it will be meeting key stakeholders next year to update guidance.
Good to see ASIC actually going after the bad guys.
If they did this in earnest there would be no one left at the AIOFP