Dealer group Financial Planning Services Australia (FPSA) has been forced to field calls from parties linked to a former authorised representative of the group over fraud claims believed to total millions of dollars.
FPSA director Michael Heine said the group has received a number of claims regarding the group’s former authorised representative, Shaun Fitzgerald.
“We’re dealing with claims that are notified to us and I’m not able to comment on the quantum, and each claim will obviously be assessed on its relevant merits,” Heine said.
“These are claims that are from parties who believe they may have incurred losses as a result of the irregularities.”
Fitzgerald was employed as an authorised representative with FPSA through the dealer group’s member firm, 360 Asset Management.
Unconfirmed rumours suggest Fitzgerald has misappropriated more than $4 million worth of 360 Asset Management client monies.
Calls to Fitzgerald’s mobile phone were blocked and 360 Asset Management’s office number was disconnected.
As well as being employed by FSPA through 360 Asset Management, Fitzgerald also held a shareholding in FPSA’s associated wrap business, netwealth Investments.
“Anyone can own shares in lots of companies. The shares of Shaun Fitzgerald represent approximately 0.03 per cent. The Heine family own around 97 per cent,” Heine said.
“We have pre-emptive rights over all shares, so if any shares are to be sold we have the ability to get them back to the group if we choose to, or we can approve another buyer.
“And whilst he has some shares, they are not in his name – they are in a company name and provides him no special rights or influence in the company and I cannot see how a shareholding of that magnitude could have any influence on netwealth at all.”
Heine denied rumours the concerns surrounding Fitzgerald and 360 Asset Management were based on a lack of a due diligence process.
“We have a rigorous due diligence process and that was followed and we’ve audited that process and are satisfied that no more could have been done,” Heine said.
“There are suggestions that he may have previously been investigated, but those investigations do not show up in any searches one is able to do.”
Late last month, Heine was forced to call in ASIC and the police after an internal investigation uncovered a series of “irregularities” linked to Fitzgerald.
In July, Heine revoked 360 Asset Management’s licence as well as the authorised representative licence of three advisers, one of them belonging to Fitzgerald.
A spokesperson for Queensland police said: “We can confirm police have received information and are currently assessing the investigation.”
