Unregistered MIS operator charged with $36.5m fraud
An unregistered managed investment scheme (MIS) operator has been charged with 50 counts of fraud which defrauded $36.5 million from investors.
Chris Marco, of Mount Hawthorn, Western Australia, was charged with 50 counts of fraud under section 409 of the Criminal Code (WA) following an investigation by the Australian Securities and Investments Commission (ASIC).
It was alleged by ASIC that between July 2013 and October 2018, Marco defrauded nine investors of $36.5 million. One investor, in particular, was defrauded of $10 million by Marco.
The maximum penalty for each offence of fraud under the Criminal Code WA was seven years imprisonment, or 10 years if the person deceived was 60 years or older.
ASIC had previously taken civil action in December 2020 to wind up the unregistered managed investment scheme operated by Marco and AMS Holdings (WA) Pty Ltd, the AMS Holdings Trust.
Marco was also permanently restrained from carrying on a financial services business without an Australian Financial Services Licence (AFSL) or operating an unregistered managed investment scheme.
This matter was being prosecuted by the Commonwealth Director of Public Prosecutions.
AUTHOR
Laura Dew
Recommended for you
Sequoia Financial Group has declined by five financial advisers in the past week, four of whom have opened up a new AFSL, according to Wealth Data.
Insignia Financial chief executive Scott Hartley has detailed whether the firm will be selecting an exclusive bidder for the second phase of due diligence as it awaits revised bids from three private equity players.
Insignia Financial has reported a statutory net loss after tax of $17 million in its first half results, although the firm has noted cost optimisation means this is an improvement from a $50 million loss last year.
With alternative funds being described as “impossible” for fund managers to target towards advisers without the support of BDMs for education, Money Management explores the evolving nature of the distribution role.
