Former adviser set to stand trial
A former Perth-based financial adviser has been ordered to stand trial for over $3.7 million in fraud and stealing offences.
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.
Intiger winds up CBA relationship
The ASX-listed advice software company has emerged from a trading halt to reveal...
Aussies to flock to IFAs
The use of independent advisers and independent advisory firms in Australia is e...
AFA looks forward to continuing reform agenda
The Association of Financial Advisers has congratulated the Coalition on returni...