In a statement, the corporate regulator said Sandeep Madhoji, a former authorised representative of Redwood Capital Group, was sentenced last month to 7.5 years imprisonment on 55 charges of fraud.
Following the prosecution, ASIC said it has permanently banned Mr Madhoji from providing financial services or engaging in credit activity.
According to the statement, between September 2010 and July 2012, Mr Madhoji had used clients’ funds to cover the loss made on other clients’ portfolios.
As a result, 14 clients collectively lost $3.3 million. These losses were incurred by Mr Madhoji using his recommended trading strategy, the statement said.
Further, Mr Madhoji made false statements to his former licensee and to clients to conceal the losses, ASIC said. He also made multiple unauthorised transfers and withdrawals from the accounts to hide the losses.
ASIC said Mr Madhoji committed these offences “to enhance his reputation to clients and create an illusion that he was a highly successful trader”.
“Dishonesty by any financial adviser will not be tolerated by ASIC,” said ASIC deputy chairman, Peter Kell.
“We will investigate and prosecute instances of dishonesty to ensure that consumers have confidence in the financial system.”
ASIC have a whole new attitude since they were exposed as a complete fraud in the financial advice space by the CBA scandal & ensuing Senate Inquiry. What I’d like to know is when some of the hopless jokes at ASIC that let all this happen on their watch are going to be held to account?
There are a few GC/Brisbane Accountants (possibly Advisers) who flogged shares in Guvera (music streaming co)…lets see when this blows up..then again, accountants can be a are protected species
Hmmmmm…. any similarity? Madhoji and Madoff
Funny I reported an adviser to ASIC who blatently sold shares in unlisted companies to his clients without any advice documents. The owner of the shares was the Adviser!!!! ASIC wrote back to me informing me they would not investigate?? Tell me Mr Kell is this dishonest behavior???