Jail for early release super scheme
|
|
A Sydney man has been jailed for two years on charges relating to the operation of an illegal early release superannuation scheme.
The Australian Securities and Investments Commission (ASIC) said the man, Gerard Karl Little of the Sydney suburb of Castlecrag, had been sentenced to two years’ imprisonment with a non-parole period of eight months for unlawfully allowing the early access of superannuation.
The charges against Little followed an ASIC investigation that found he had failed to ensure his self-managed superannuation fund, known as the Little Superannuation Fund (LSF), was maintained in accordance with the sole purpose test.
The investigation found the preserved superannuation benefits of 121 superannuants totaling $3,531,056.93 were deposited with Little into the bank accounts of LSF after being rolled over from 11 complying superannuation funds.
The court was told that Little then used the LSF to obtain early access to the benefits by withdrawing and distributing the funds to superannuants while retaining over $685,000 for himself by way of a commission.
AUTHOR
Mike Taylor
Recommended for you
Sequoia Financial Group has announced it is selling off its Informed Investor subsidiary which it acquired in April 2022.
Wealth Data has examined which advice business model has seen the most growth since the start of the year including those that offer holistic advice.
Research conducted by Elixir Consulting and Lonsec has quantified the efficiency gains of using managed accounts in financial advice practices in hours per week saved.
With only one-quarter of advice practices actively seeking feedback from clients, the Financial Advice Association Australia has emphasised why this is a critical tool for client retention.
