Former AFS AR gets 10 years’ jail

18 March 2019
| By Mike |
image
image
expand image

A former financial adviser who advised clients to set up self-managed superannuation funds (SMSFs) but used the money for his own purposes has been sentenced to 10 years jail in the District Court of NSW.

In what represents one of the longest recent sentences relating to financial advice, the man, Gabriel Nakhl was convicted of engaging in dishonest conduct in relation to eight charges brought by the Australian Securities and Investments Commission (ASIC).

ASIC said the conduct affected 12 investors involved with Nakhl while he was a representative of Australian Financial Services (in liquidation) and as a sole director of SydFA Pty Ltd (deregistered).

The court found that Nakhl advised clients to set up self-managed superannuation funds and to invest their superannuation and other funds in products such as shares, managed funds and high interest rate bank accounts but, rather than investing the funds, Nakhl used the funds “as he pleased” for his own purposes.

It said Nakhl then lied to the investors, telling them that he had invested their funds in accordance with his advice and that their investments were performing well.

Nakhl also tried to cover up his wrongdoing by having the 12 investors sign documents that supposed authorised him to use the funds the way he did.

ASIC said the 12 investors allowed Nakhl to invest approximately $6.7 million on their behalf, and that he lost approximately $5.1 million of these invested funds.

Nakhl was the subject of ASIC freezing order action in 2013, became bankrupt in September 2013 and was permanently banned in November, 2013.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 1 week ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 1 week ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 3 days ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 1 day ago

Having divested its advice business in August, AMP is undergoing restructuring in at least four other departments amid a cost simplification program....

2 weeks 5 days ago