Former adviser appears in court on fraud charges

Former adviser appears in court on fraud charges

A former veteran financial adviser has appeared in court on seven charges of fraud committed between June 2011 and April 2012.

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.

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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.

Adrian Flores

Adrian Flores

Adrian Flores is a features editor at Momentum Media, focusing mainly on banking, wealth management and financial services. He has also written for Public Accountant, Accountants Daily and The CEO Magazine.

You can contact him on [email protected].

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