Keith James Flowers (previously Nigel Keith Flowers) appeared in the Downing Centre Local Court in Sydney today, charged with six counts of using his position dishonestly contrary to section 184(2) of the Corporations Act 2001 and one count of dishonestly obtaining a financial advantage by deception contrary to section 192E Crimes Act (NSW), ASIC said in a statement.
Between 1991 and 2012, Mr Flowers was a financial adviser primarily providing financial services to both the medical and dental professions in Australia.
Mr Flowers was the founder and controller of the Flowers Financial Group and was also the director of Flowers Financial Management (FFM) and 1Source Wholesale Investments.
ASIC alleged that between June 2011 and April 2012, Mr Flowers used his position as a director of 1Source Wholesale dishonestly, with the intention of gaining advantage for either himself or FFM, by causing the transfer/withdrawal of $179,500 of seed capital.
It also alleged that Mr Flowers falsely represented to business partners that $30,000 raised for the failed IPO would be returned by him to investors after the float was cancelled, and that Mr Flowers did not return the funds to investors, rather he applied the funds for his own benefit and/or for the benefit of 1 Source Holdings.
In 2011, Mr Flowers and his company, Flowers Financial Group, were engaged to raise seed capital to float an amalgamation of several financial planning businesses, including his own.
ASIC said 1Source Wholesale was utilised as the trustee company to hold funds for the proposed float and initial public offering.
“The charges were brought against Mr Flowers following an ASIC investigation into his conduct as the director of companies in the Flowers Financial Group,” ASIC said.
“The matter has been adjourned to 15 October 2019 before the Downing Centre Local Court, Sydney, for further mention.
“The Commonwealth Director of Public Prosecutions is prosecuting the matter.”
ASIC permanently banned Mr Flowers from providing financial services and engaging in credit activities in 2014.
Well Anonymous (responding to Allan), Jack Regan at AMP got paid $2m in his final year and then $2m when he left. So ok, that’s not theft. How about criminal negligence in the performance of his job?.
[quote=Allan]How many bank executives have gone to jail for stealing peoples money and charging fees from dead people?
This invidiual did a crme, yet if you are from head office, a refund and an apoligy is suffice. [/quote][quote=Allan]How many bank executives have gone to jail for stealing peoples money and charging fees from dead people?
This invidiual did a crme, yet if you are from head office, a refund and an apoligy is suffice. [/quote]
He ACTUALLY stole money out of their account. While I don’t agree with what the bank bosses did you have to realise they were trying to manage a massive corporation. Things get through the cracks and people find a way to dodge things up. I haven’t read anywhere that a bank ceo or manager actively TOOK money out of an account and put it into their own..
Culture can get away from you when you’re in a big organisation and hey they’ve been pulled up and now it will stop..
The below comments is half the problem that the Financial Planners have – they all think they are better than each other – Bank Planners bag IFA’s and IFA’s bag bank planners – in the mean time your industry is going down the drain and you are all too stupid to see what’s happening – maybe you need to take a leaf out of what the Mortgage Brokers managed to achieve in less than a year where they all combined to work together for a common goal – I spent 30+ years in FP and have now been involved with Mortgage broking for just over 4 years and the difference is massive
Allan, or wanders off into the sunset with a bag full of cash and/or options and conveniently leaves the mess behind. One reason I’ll never use SEEK again (or a few other well known brands).
How many bank executives have gone to jail for stealing peoples money and charging fees from dead people?
This invidiual did a crme, yet if you are from head office, a refund and an apoligy is suffice.
Good jail these thief’s so hard working honest advisers like 99% of us are left