Life ban for adviser’s elderly scam
TheAustralian Securities and Investments Commission(ASIC) has permanently banned former financial adviser David Paul Mudge from acting as a representative of a securities dealer or an investment adviser.
The ban was made following Mudge's conviction for inducing a person to deal in securities by dishonestly concealing material facts.
Mudge, formerly of Windsor Gardens, South Australia, was sentenced to 27 months jail, to be released after a year, upon entering into a good behaviour bond for 15 months.
The Adelaide District Court found that between September 1999 and October 2001, Mudge presented an elderly client with eight documents to sign, and on each occasion, dishonestly concealed that the documents authorised him to withdraw money from her investments for payment to him or his company, Davcal.
Using this method, Mudge dishonestly withdrew a total of $197,375 from the account of his client and used it for his own purposes.
“Due to the serious nature of Mudge's conduct, ASIC has permanently prohibited him from giving investment advice or carrying on a securities business,” ASIC director enforcement Mark Steward says.
“ASIC will not tolerate advisers who use their positions for their own gains, and we will continue to take actions to protect the public from advisers who cannot be trusted in their industry,” he says.
Mudge has a right to appeal to the Administrative Appeals Tribunal for a review of ASIC's decision.
Recommended for you
The financial advice sector has benefited from a net rise of 11 advisers this week, according to Wealth Data, while AMP Group reports losses as several advisers open their own licensees.
Praemium has updated on the progress of its integration with platform OneVue, which it acquired from Iress earlier this year.
ASIC leadership has waded into the political debate about Qantas flight upgrades, confirming its executives hold membership of the Chairman’s Lounge but denying it affects their regulatory ability.
Perth advisory firm Capital Partners Private Wealth Advisers has announced a new managing director to take over from David Andrew as he steps down after 25 years.
