Former Melbourne financial planner Bradley Grimm has pleaded guilty to three counts of engaging in dishonest conduct whilst running a financial services business.
ASIC said that Mr Grimm engaged in dishonest conduct on five occasions between 18 February and 12 March 2015 when he transferred monies between two of his clients’ SMSFs to three separate companies, of which he was the sole director and which had little market value.
These three companies were Thrive Lending Pty Ltd, Trade BTC Pty Ltd, and Beta Pharmacology Pty Ltd.
“On a further seven occasions between 5 November 2015 and 11 November 2015, Mr Grimm dishonestly transferred shares and convertible notes owned by his clients’ SMSF to Equity Capital Partners Hedge Fund Pty Ltd, without adequately advising his client that it was a company of which he was the sole director and had a personal interest,” the regulator said.
“He also failed to advise his client that ASIC had sought the winding up of entities related to him, including Ostrava Equities Pty Ltd (which was authorised to provide financial advice and deal in financial products), and that he was banned from providing financial services by order of the Federal Court.”
The charges against Mr Grimm follow the corporate regulator’s successful action in the Federal Court for the winding up of Ostrava Equities Pty Ltd, Ostrava Asset Management Pty Ltd, Ostrava Securities Pty Ltd, Ostrava Wealth Management Pty Ltd, Beta Pharmacology Pty Ltd, Prometheus Capital Pty Ltd, Thrive Lending Pty Ltd, Trade BTC Pty Ltd and Equity Capital Partners Hedge Fund Pty Ltd.
The matter has been listed in the Victorian County Court on 14 April 2023 for plea and sentencing hearing. The Commonwealth Director of Public Prosecutions is prosecuting the matter after a brief was referred by ASIC.
At the time of the offending, ASIC noted that each breach of section 1041G(1) of the Corporations Act carried a maximum penalty of 10 years’ imprisonment.
