Phony investment manager charged with dishonesty

In a statement, ASIC said Kenneth Grace had appeared in Tweed Heads Local Court on 12 April charged with eight counts of dishonest conduct and one count of operating a financial services business without a licence.

Mr Grace had been the director of Goldsky Asset Management Australia, Goldsky Global Access Fund and Goldsky Investments, as well as a US-based company, Goldsky Asset Management LLC.

ASIC said Mr Grace had raised money from investors in his local area of Kingscliff in the NSW North Coast as well as "high profile Australian sports people".

"ASIC alleges between November 2014 and October 2018, Mr Grace represented to investors that their money would be invested in a managed fund which was operated by Goldsky and used for trading," the regulator said.

"ASIC alleges Mr Grace did not apply the majority of investor monies to investment activity and those that were used for trading did not generate the profits that he represented to investors.

"ASIC further alleges that funds were used to pay returns and redemptions to existing investors and were also used to pay for the lifestyle expenses of Mr Grace and his immediate family."

The charges carry a maximum sentence of 10 years' imprisonment and two years' imprisonment, respectively.

Mr Grace was granted conditional bail and the matter was adjourned to 7 June 2021.