ASIC has announced that it has banned a NSW accountant from providing financial services for 6 years following an ASIC investigation. ASIC said it found the accountant had engaged in dishonest conduct and misleading or deceptive conduct between 2 March 2009 to 29 June 2010 by:

  • making dishonest statements to a client about where their money was to be invested;
  • failing to invest $200,000 he received from a client, instead, using it for his own advantage including paying credit card debts and purchasing personal assets;
  • engaging in misleading or deceptive conduct in relation to statements made in client letters.

ASIC said it found the money used by the accountant was transferred from an elderly client’s self-managed superannuation fund. The accountant is a director of a number of companies based in Newcastle, ASIC said.

The accountant has the right to appeal to the AAT for a review of ASIC’s decision.

Source: ASIC release 13-069MR, 3 April 2013

[LTN 63, 4/4/13]