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
A financial advice firm has been penalised $11 million in the Federal Court for providing ‘cookie cutter advice’ to its clients and breaching conflicted remuneration rules.
Insignia Financial has experienced total quarterly net outflows of $1.8 billion as a result of client rebalancing, while its multi-asset flows halved from the prior quarter.
Prime Financial is looking to shed its “sleeping giant” reputation with larger M&A transactions going forward, having agreed to acquire research firm Lincoln Indicators.
An affiliate of Pinnacle Investment Management has expanded its reach with a London office as the fund manager seeks to grow its overseas distribution into the UK and Europe.
