Krishnan Rasaratnam, a former director of Strategic Alternative Investments, embezzled investor funds by diverting them to his personal trading account.
The investment activity conducted by SAI resulted in losses exceeding $12 million.
Mr Rasaratnam pleaded guilty to one count of using a false instrument and five counts of dishonest conduct in relation to providing a financial service.
He also faced one additional charge of using a false instrument, three charges of dishonest conduct and two charges of making false statements to ASIC.
He was sentenced to three years and three months at Sydney's Downing District Court on December 23 by Judge Hoy, with a minimum of 18 months to be served before becoming eligible for parole.
In sentencing Mr Rasaratnam, Judge Hoy, emphasised the length of time over which the offences were committed, the significant amount of money invested and lost by investors and the position of trust Mr Rasaratnam was acting in as a financial adviser.
ASIC Commissioner John Price said maintaining fair and efficient markets is key for ASIC and the regulator will not hesitate to take action against those who engage in dishonest behaviour or make deceptive representations.
“This sentence recognises the seriousness of Mr Rasaratnam’s conduct and should serve to deter others from engaging in similar behaviour,” he said.
