The District Court of South Australia convicted James Gibbs of theft and other dishonesty offences committed when he was director of James Gibbs Investments (JGI), following an ASIC investigation.
ASIC said Gibbs had previously pleaded guilty to all charges, which he committed against his clients between 20 August 2009 and 30 July 2016. At the time, he was a financial adviser, trusted by his clients to operate their self-managed superannuation accounts as well as open new accounts.
In some cases, ASIC found that Gibbs was given almost complete control of his clients’ affairs, which enabled him to conduct unauthorised transactions and that, once he controlled the accounts, he went on to steal their funds.
Gibbs used his clients’ funds for his own benefit, such as propping up his business, paying his own credit card debts, paying himself and staff a salary and for gambling.
Between 25 June 2012 and 30 July 2016, ASIC said Gibbs also created and used false documents, including bank documents and member statements in which he lied to his clients about the value of their investment portfolios to cover up his thefts.
“Clients need to be able to trust their financial advisers, and in this case, Mr Gibbs breached that trust,” said ASIC commissioner Danielle Press.
“ASIC’s investigation revealed that Mr Gibbs deliberately withheld information from clients to avoid detection. Financial advisers should always allow clients to access information about their own investments, and clients should be concerned if this is not occurring.”
In delivering the sentence, Judge Boylan found that Gibbs had built a relationship of trust with his clients, and then repaid their trust by systematically stealing their life savings and spending their money for his own purposes. He said Gibbs stole from the “easiest targets…who placed blind faith in him”.
Judge Boylan also remarked that Gibbs’ behaviour was “despicable” and “cruel” and his offending involved a “gross breach of trust”, and found that the offending fell at the higher end of the scale in terms of seriousness.
Gibbs is also automatically disqualified from managing a corporation for five years.
The matter was prosecuted by the Commonwealth Director of Public Prosecutions after an investigation and referral of a prosecution brief from ASIC.
I just read the FAR record for James Gibbs 243609. Interestingly he appears to have a 1993 law degree.
[quote=jenny sachberg.]This sort of thing is not new. Solicitors have been raiding clients’ Trust Funds for decades if not Centuries. Yes does happen occasionally with Financial Advisers but only a very few over many years. No excuse for this criminal, but lets get the facts straight. Also, how often do we hear of solicitors committing such crimes compared with this type of notification made by ASIC, with trumpets blaring. The crimes of Solicitors and others should be in bright lights, not only those of Fin Advisers. But No!. ASIC seem to be hell bent on destroying the reputations of ALL FINANCIAL ADVISERS![/quote][quote=jenny sachberg.]This sort of thing is not new. Solicitors have been raiding clients’ Trust Funds for decades if not Centuries. Yes does happen occasionally with Financial Advisers but only a very few over many years. No excuse for this criminal, but lets get the facts straight. Also, how often do we hear of solicitors committing such crimes compared with this type of notification made by ASIC, with trumpets blaring. The crimes of Solicitors and others should be in bright lights, not only those of Fin Advisers. But No!. ASIC seem to be hell bent on destroying the reputations of ALL FINANCIAL ADVISERS![/quote] I think more than anything, its the character of the individual..this person would have done the same in any profession…cop, lawyer, accountant. This will lawyers are, they just generally rip you off to your face..them and CBA execs…
Disgusting. Hope he genuinely considers his wrong doing in jail and comes out a better person.
A crook , sound s fair enough .
Hope this dirtbag ripped off some bikies ? family because they will make sure he picks up the soap ? every day for the next 7 years ?
Bet asic were disappointed he didnt work for dover which would’ve given them a basis for closing them down last year.
Hahaha he can run a company before his minimum parole ?
What is the difference to that adviser getting Ten (10) years jail but so far when compared his crimes to the crimes of the 2006 Executive-Government who have not got any jail?
No jail time no AFP Investigations not Attorney-General inquiries despite the facts that the Commonwealth’s Executive-Government in 2006 corruptly & fraudulently got stacked & rigged the following regulators to tactically be able to cause the misrunning of the ASX Board, the ASIC Board, the ACCC Board & the ACMA Board with Telstra legal advisory firms people so that the elected officers of the Crown & their Telstra selected & appointed boards as corrupt officers of the Commonwealth of Australia had collusively each fraudulently engaged in crimes of insider trading and market manipulation frauds & had corrupted the regulators to fraudulently and criminally keep concealing that they had mutually agreed to omit to disclose a very-price-sensitive contingent liability owing during the Telstra three (3) alleged share float & to also have the regulators to conceal share encumbrances’ recorded court of jurisdiction official encumbrance’s awarded and recorded over those shares and to conceal that other encumbrances’ were and still are duly assigned & recorded & placed officially over those Telstra three (3) shares dividends.
To also have the alleged ASX, ASIC, ACCC & ACMA regulators to additionally conceal & not reveal that the Telstra shareholder Minister & Minister for Finance, the thereby corrupt Senator Nick Minchin & his Telstra Board have each not yet duly signed off in the purported Telstra three float alleged but invalid Telstra three float prospectus it does not have any disclosures by way of them not publishing in it any Seller’s and Directors’ Authorisation signatures. Thus the Telstra three float is not authorised in law and the Telstra three share float shares must be bought back.
Indeed in 2017 Future Fund Chairman Peter Costello repeatedly said to me in Collins Street in Melbourne, that he believes Nick Minchin has to be sued. But still Attorney-General Brandis & now Attorney-General Porter both are knowingly concealing each of those indictable crimes of Executive-Government’s fraud & deceit, as did each Prime Minister including Prime Minister Morrison, as did each alleged Governor-Generals to end June 2019.
Why are they not being AFP investigated & charged those criminals, could it be corruptly no separation’s of powers?
Anything but support for this jail sentance is a worry. This guy is the scum of the earth! Any decent person would agree. He should have received longer.
Wrong doing is wrong no matter what. True integrity is doing what is ethical and right when no one can see you, and be certain that you will succeed in all aspects, including financially. Not too sure how one can live with oneself knowing he has done this sort of fraud to clients who trusted him.
new a solicitor who did the same thing got 2/3 years
He may even be able to get a role at FARCEA soon with these ethics…
“EVIL” May he rotten in hell
This sort of thing is not new. Solicitors have been raiding clients’ Trust Funds for decades if not Centuries. Yes does happen occasionally with Financial Advisers but only a very few over many years. No excuse for this criminal, but lets get the facts straight. Also, how often do we hear of solicitors committing such crimes compared with this type of notification made by ASIC, with trumpets blaring. The crimes of Solicitors and others should be in bright lights, not only those of Fin Advisers. But No!. ASIC seem to be hell bent on destroying the reputations of ALL FINANCIAL ADVISERS!
Luckily he can go back to managing a corporation halfway through his sentence.
but yet institutions who have stolen billions, have not been sentenced to a single day??