In a statement on Friday, the Australian Securities and Investments Commission (ASIC) confirmed that Mark Francis McCabe, of Roseville in NSW, has been charged with eight counts of dishonestly obtaining a financial advantage by deception under s192E of the Crimes Act (NSW).
Mr McCabe was formerly the director of Guevara Capital Access and Online Trading Capital and previously held senior positions at JP Morgan.
It has been alleged that, between 1 January 2015 and 28 April 2021, Mr McCabe dishonestly obtained a financial advantage totalling $940,350 from eight people, seven of whom were clients of Guevara Capital Access and Online Trading Capital.
ASIC originally took civil action in the Federal Court last April to restrain Mr McCabe from leaving Australia while an investigation was underway.
At the time, the regulator communicated that it was concerned Mr McCabe may have engaged in dishonest conduct regarding a financial product or financial service.
“This may have involved promises by Mr McCabe to provide clients with access to foreign exchange trading accounts containing large amounts of funds, but instead providing access to demonstration accounts that did not contain any real capital,” ASIC explained.
Mr McCabe was subsequently arrested in August last year on an arrest warrant obtained by ASIC. He was charged with one count of dishonestly obtaining property by deception under s192E of the Crimes Act (NSW), which is now set to be withdrawn on 9 May.
The matter is being prosecuted by the Commonwealth Director of Public Prosecutions following a referral from ASIC. Mr McCabe has been granted bail and will appear in court on 9 May for committal.
ASIC noted that the maximum penalty for dishonestly obtaining financial advantage by deception under the Crimes Act NSW is 10 years imprisonment.