Lewis Fellowes was banned after ASIC found he had engaged in misleading or deceptive conduct in relation to six clients over July 2008 to July 2010, according to a statement from ASIC.
“Mr Fellowes transferred more than $480,000 of client funds from their margin lending accounts into his personal account and that of his wife without the knowledge or authorisation of those clients,” the statement said.
“Mr Fellowes also transferred $1,000,000 from a client’s bank account to his own.”
According to ASIC, Mr Fellowes provided financial advice for Tolhurst in Gladstone from 1995 until 2009.
Following a merger between Tolhurst and Patersons, Mr Fellowes became branch manager of Patersons Gladstone before moving to Perth in 2010 and taking on the role of Paterson’s WA manager of retail operations.
ASIC’s investigation was prompted by a voluntary report submitted to ASIC by Patersons suggesting Mr Fellowes had engaged in misconduct beginning at his former role at Tolhurst.
“Mr Fellowes subsequently returned the funds to his former clients,” the statement said.
Agree with Karen. Why isn’t this punished by the justice system with the same enthusiasm as a minor robbery. Court appearance, witnesses, jail time if found guilty. Those wealthy enough to pay funds back (big licensees included) seem to keep their freedom and no one is ever really punished. No wonder people don’t trust advisers and big business.
Karen, the answer is what I tell all new clients- never allow your adviser direct access to your funds. Even if they place trades on your behalf the funds should come directly to and from the client’s own bank account. Discretionary managed accounts is another area fraught with risk.
I would like Staff Reporter to find out and report if Mr Fellowes was prosecuted for a crime by any of the parties ( most particulary Tolhurst) and if he is doing any crime. Clearly knowingly and deliberately stealing nearly $1500,000.00 from client accounts should result in gaol time greater than what the criminals get when they hold up the local 7eleven for a few thousand?? Also I would like Staff Reporter to follow up with Tolhurst Head Office how their systems allowed such stealing from their clients account without them knowing anything about it – not until a new company took over? This is so serious,a nd without these questions answered no amount of professional qualifications or organisations can make many of us feel that trusting a financial planner is a safe and wise thing to do? All the dedicated honest financial planners should be up in arms about this, and also heavily leaning on their regulators to investigate all the issues involved here.