Appearing before the Downing Centre Local Court today, former Millennium3 Financial Services financial adviser Melinda Scott pleaded guilty to three charges of dishonest conduct and four charges relating to making and use of false documents.
“Following an investigation by ASIC, Ms Scott admitted to misconduct that occurred between 2 August 1989 and about 27 April 2012. On 9 February 2004, Ms Scott became an authorised representative of Millennium3,” said a statement on the ASIC website.
“Millennium3 is a wholly owned subsidiary of Australia and New Zealand Banking Group Limited (ANZ). Prior to Millennium3, Ms Scott was employed in various positions in the financial services industry including at Roach Graham Scott, FPI Pty Ltd and Financial Wisdom Ltd.”
Ms Scott admitted that between August 1989 and April 2012 she “fraudulently $5.9 million worth of her clients’ money for her own purposes without her client’s knowledge or consent”.
The ASIC statement said that “ANZ and Millenium3 fully co-operated with ASIC’s investigation” and engaged external lawyers and auditors to a “thorough investigation”.
The matter will return to the NSW District Court in January.
I think the reply by cafa accords with the point I was making. Cafa says ‘No one is currently pro-actively watching the store.’ My view is that too many people have lost the work and benefit of their entire working lives when their investments have been under the advice of a financial planner. Storm, Westpoint, CBA planners, my relative and the abalone farms, my friend and the forestry investments, the many, many reported here. Very little if any restitution provided to them, not event the satisfaction of seeing the unethical, incompentent or blatantly criminal behind bars.
Many of you in this industry complain on this forum about the amount of red tape and compliance you endure. What if all of you fought the good fight to influence the law so that such crimes as Ms Scott of Millenium 3 were harshly and quickly dealt with before the law. Of course the majority of planners have good intentions but you are silent and weak with your very very, bad apples.
Karen your commenst show blatant bias and prejudice againt an entire industry of people. Thats’ no differnt to race hating,gender hating, ect.
Ignorance is ignorance Karen.
Maybe you think its better that all “clients trust their wealth to you instead..hmmm???
And where is Millennium3 in this? Under their watch the client was robbed of about $500k per year.
It’s about time these groups updated their systems and ran software audit checks to highlight at risk clients and then perform internal audits. Don’t wait for a client to complain – too late.
Answer – fine the license holder 3 times the cost to the client and I assure you they will implement software audits in a jiffy.
Any license holder not prepared to take ownership for their reps need to go bust post haste.
No one is currently pro-actively watching the store.
Karen, in your example of the bank robbery, would you expect ANZ to persecute the bank robbers or would you leave that to the DPP and Police? The involvement of an independent third party also removes the potential for ‘spin’ or managing information to prevent negative publicity. Your assertions regarding financial planning are an effrontery to those of us who work hard, with passion, to improve the financial well being of our clients.
Karen, you are entitled to your opinion, even if it is flawed. I like others will take offence at your comment re financial planners, whatever your background, are you suggesting an accountant or solicitor is better. History is FULL of criminal acts from all backgrounds and professions. Yes, I do expect more than a slap on the wrist for this person- the law is the same for all- even your kind.
Why is there no means for Anz or Millenium3 to prosecute Ms Scott for stealing/fraud/thievery on behalf of the clients? Why must ASIC using taxpayer’s money investigate and prosecute? Can a lawyer answer what is the gap in the law that means large financial corporations are not able to bring their own staff to legal account?
And stealing $5.9 million for your own back pocket is not dishonest conduct. It is stealing on a massive scale. Imagine if I walked into ANZ in the city, threatened the teller and walked out with $5.9 million. Result – massive manhunt, headliine news for weeks until found, millions spent on security upgrades and finally maybe ten, maybe twenty years in jail. So what will Ms Scott get for her dishonest conduct – a slap on the wrist? It is fair warning – the greatest risk to your wealth is trusting it to a financial advisor – not some small independant; no, even the big ones with all the risk, compliance, training rings around them!!