In a statement today, ASIC announced Nicholas Ellis has pleaded guilty in the Downing Centre District Court in Sydney to charges of making false or misleading statements to obtain money from clients and fraudulent misappropriation of client funds.
Ellis, an accountant and former financial adviser from Valentine, NSW, was banned for other reasons for six years in 2013.
In the statement today, ASIC said that following an investigation, Ellis admitted that between about 23 March 2009 and about 18 July 2009 he sent 10 letters and one email to a number of his clients for the purpose of raising investment funds from them to purchase a hotel in Tura, NSW through his company, Tura Pty Ltd.
The letters and email contained false and misleading statements in relation to the purchase of the hotel; and fraudulently misappropriated over $500,000 of client funds received by Tura Pty Limited for his own purposes, ASIC said.
The Commonwealth Director of Public Prosecutions is prosecuting the matter.
Ellis pleaded guilty to the charges on 4 August 2017. The matter has been set down for a sentence hearing at the NSW District Court on 26 April 2018.
According to the ASIC statement, the maximum term of imprisonment for each charge is: S178BB of the Crimes Act 1900 (NSW) (obtaining money etc by false and misleading statements), five years; S178A of the Crimes Act 1900 (NSW) (fraudulent misappropriation), seven years.
2009 huh. Did he have a degree or equivalent.. Having a degree makes you a better and more ethical accountant. Being an accountant is even better. Member of a “professional ” body too, of course. Any honest observer knows what ASICs priorities are – abolish commissions.
The wrong doing occurred in 2009. Why did it take so long for ASIC to investigate and take action? There appears to be something seriously wrong with ASIC’s priorities.
Another dodgy accountant giving financial planners a bad name.
Fair go, this guy has a degree. He can’t possibly be unethical.
Wrong doers will always exist no matter how much compliance you load onto those who will always do the right thing anyway. The difference is the flow on impact that onerous compliance has on advisers clients who will eventually become the victims of these unintended consequences when their advisers cave in from the weight of it all.
So was this guy an accountant giving financial advise under a limited license or was he properly licensed as a finacial adviser. Please advise.
An account hey!