A financial planner who allegedly pocketed huge commissions to channel almost $7 million into Westpoint products has been banned.
ASIC announced yesterday it banned Sydney-based Andy Shen-En Chen from providing financial services for five years.
It follows the permanent banning of former Perth planner Annemieke De Boer of Centro Financial Synergy Group on September 20.
De Boer who is also facing criminal charges over allegations she stole money from clients that was intended for investment in Westpoint.
ASIC said it is considering banning a further 15 planners who advised on Westpoint.
Chen was the director and secretary of Investpoint Financial Services, based in St Leonards on Sydney’s lower North Shore.
He was an authorised representative of Quantum Securities, which holds an Australian financial services licence.
Through Investpoint, Chen targeted members of Sydney’s Chinese community to invest in the property empire, which collapsed in November 2005 owing $320 million to around 4000 investors.
An ASIC investigation found that Chen provided inappropriate advice to clients. He was found to have made statements to his clients about Westpoint products that were misleading or deceptive.
Law firm Slater and Gordon is suing Quantum and other dealer groups Masu Financial Management and Professional Investment Services in the NSW Supreme Court on behalf of Westpoint investors.
In an earlier statement this year, Slater and Gordon said Chen received commissions of more than 10 per cent by Westpoint and at all times led clients to believe the investments were through Quantum.
The law firm said Chen advised 59 clients to invest around $6.9 million in Westpoints Bayshore and Mount Street, with seven investing just one month before both schemes collapsed.
Chen has the right to appeal the decision.
