The corporate watchdog has handed down multiple infringement notices, including a permanent ban for an adviser who defrauded clients of more than $3.6 million.
The Australian Securities and Investments Commission (ASIC) obtained court orders permanently banning former Millennium3 adviser, Melinda Scott, from providing any financial services and disqualifying her from managing corporations for 25 years, after she defrauded clients over a period of eight years.
Between 9 February 2004 and 27 April 2012, Ms Scott was found to have repeatedly engaged in dishonest conduct when providing financial services to clients.
The court found that Ms Scott obtained money from 56 separate clients, which she used for her own personal benefit, knowing it was not in accordance with the client’s instructions.
Ms Scott was also found to have told clients their money had been invested in accordance with their instruction and was making returns.
The Supreme Court of New South Wales also made orders permanently restraining Roach Graham Scott Pty Ltd (RGS), a company of which Ms Scott was sole director, from carrying on a financial services business or providing a financial service.
She was an authorised representative of Millennium3 at the time, but had her authorisation revoked on 15 May 2012.
An ASIC investigation has also resulted in charges for a former JPMorgan Chase employee, over an insider trading scheme for more than $24,000.
Elisa Rietbergen was charged by the District Court of New South Wales with insider trading, relating to the acquisition of Valad Property Group Limited by affiliates of the Blackstone Group L.P. on 29 April 2011.
Ms Rietbergen was involved with tipping her friend, Joseph Levi, with information she gained while working for JPMorgan during the time.
Both were sentenced to 18 months’ imprisonment, to be released immediately on payment of $1,000 on the provision of good behaviour for two years.
In another finding, BGC Partners paid a $45,000 penalty, following an infringement notice handed down by the Market Disciplinary Panel (MDP).
The ASIC peer review body alleged BGC intentionally withheld the entry of buy and sell orders on the ASX 24 Market to enable them to transact with one another, which potentially precluded other participants from taking part.
This would have contravened section 798H(1) of the Corporations Act 2001 (Corporations Act) by reason of contravening Rules 3.1.8 and 3.1.11 of the ASIC Market Integrity Rules (ASX 24 Market) 2010 (MIR 3.1.8 and MIR 3.1.11).
MIR 3.1.11 provides that: “A Market Participant must not execute or attempt to execute Trades with the intent to exclude other Market Participants or their Representatives.”
After receiving the infringement notice BGC put forward remedial measures including new surveillance monitoring and staff training.
