Former adviser pleads guilty to unlicensed product advice offences

Ashley Vincent Arandez of Hoppers Crossing, Victoria, pleaded guilty in Victoria County Court on 1 August to dishonest conduct in relation to a financial product or financial service, carrying on a financial services business without a licence, and recklessly dealing with proceeds of crime between September 2017 and April 2021.

According to ASIC, Arandez carried on a business where he encouraged clients to roll over their superannuation into new self-managed superannuation funds (SMSF) and invest in various business ventures that he controlled.

Arandez had previously been an authorised financial adviser across a range of licensees starting in December 2004, however, this ceased and he was not licensed or authorised to engage in financial services from 23 June 2019.

“The charges related to Arandez carrying on a financial services business through which he encouraged clients to invest in various business ventures that he controlled.

“A total of $1.97 million was transferred to Arandez, in circumstances where he was providing financial product advice, but did not hold an Australian Financial Services Licence or valid Authorised Representative licence to receive those funds.”

At the time of Arandez’s offending, failure to hold an AFSL carried a maximum imprisonment of five years, engaging in dishonest conduct in relation to a financial product or financial service while carrying on a financial services business carried a maximum imprisonment of 10 years, and recklessly dealing with the proceeds of crime carries a maximum imprisonment of 12 years.

ASIC obtained orders from the Federal Court to freeze the assets of Arandez and five related entities in June 2022, which were updated in February 2023 to include travel restraint orders preventing him from leaving the country.

A sentencing hearing has been set for 20 October 2025.

The office of the Director of Public Prosecutions is prosecuting the matter following an investigation and referral by ASIC.