Todd Michael King, who was charged in September 2013 with one count of fraud and four counts of stealing, has been ordered to stand trial in the Perth Magistrates Court.
Mr King, 41, was an authorised representative of Australian Stockbroking and Advisory Services Limited (ASANDAS) between 9 May 2006 and 3 September 2008, according to a statement by ASIC.
“He was also a director of Stripe Capital Pty Ltd, which was a corporate authorised representative of ASANDAS between 24 March 2006 and 31 July 2009,” said ASIC.
The charges relate to Mr King entering into contracts with two clients to borrow shares and funds as collateral on margin loan accounts, according to ASIC.
“It is alleged in late 2007 Mr King borrowed from a client 85,000 Wesfarmers shares for three months as collateral for a margin loan account held by Mr King’s mother. In early 2008 Mr King’s mother’s account had two margin calls made on it, which Mr King met by allegedly transferring over $1.4 million in shares from the client’s account without his knowledge or consent,” said ASIC.
“In early 2008 it is alleged Mr King borrowed $1.2 million from another client to enable a company controlled by Mr King to complete the purchase of shares and options through a margin loan account. This company subsequently had margin calls made on its account and Mr King allegedly, without the client’s knowledge, transferred over $1 million in shares from the client’s account to meet them,” said the regulator.
Mr King was permanently banned by ASIC in May 2011 after the regulator found he engaged in misleading and deceptive conduct between July 2007 and June 2008.
ASIC found Mr King placed a scanned copy of a client’s signature on a document, “which made possible the unauthorised transfer of 40,000 client shares with a value of approximately $1.5 million”, said ASIC.
No PB financial planners who care about their reputation in the community should be making loud noises against this advisor. Polite, quiet, process that takes years does nothing for cleaning out the profession. The paper trail and ASIC determination are there for enough proof. Once in the courts very often the process founders on small details and technicalities and only a slap on the wrist results.
The public needs to hear that the profession is angry about the rogues.
And not before time. Sadly, some witnesses have already passed away – their deaths having been accelerated by the stress. Innocent until proven Guilty??? Try reading the ASIC press release on why they banned him for life!!!!
Hey Guys
Understand the sentiment but remenber innocent until [b]proven[/b] guilty
Jail time is the order of the day for that chap. He is nothing more than an educated criminal with no moral standing.
It is this type of headline that makes me think maybe the terms Financial Adviser/ Financial Planner should be enshrined in law. Is Mr King a stockbroker or a Financial Adviser? Is he a member of the FPA or a CFP?
It’s mongrels like Mr. King who causes the rest of us innocent sheep to pay 30% extra every year in PI premiums.
I hope he goes away for a good 10 years