ASIC has alleged that Perth-based Rahul Goel contravened sections 1041G(1) and 1311(1) of the Corporations Act 2001 (Cth) by engaging in dishonest conduct while carrying on a financial services business via his company AR Wealth and Finance.
The regulator has also claimed Mr Goel acted dishonestly in relation to hardship and other applications to superannuation funds on behalf of his customers.
The matter has been listed for mention before the Perth Magistrates Court on 4 December.
Mr Goel has been placed on bail with conditions that he not leave Australia and that he surrenders his passports and does not apply for any further passport or international travel document.
If convicted, each offence carries a maximum penalty of 15 years’ imprisonment.
The matter is being prosecuted by the Commonwealth Director of Public Prosecutions.
The charges have followed an investigation into Mr Goel’s conduct when dealing with potentially vulnerable consumers in relation to their superannuation.
On 18 September, the Federal Court made interim orders including restraining Mr Goel from leaving the jurisdiction, requiring him to surrender his passports and freezing the assets of Mr Goel and AR Wealth and Finance. The proceeding is listed for an interlocutory hearing on 6 October.
Article is brief. ASIC allege he acted dishonestly on hardship applications to help his customers?
Articles like this need more detail. ASIC doesn’t help the industry at all with press releases that merely contain the charge.
What is it alleged he did that warrants the charge? How did he benefit?
Did he charge the customers an excessive amount to access their super then fabricate a story to help the application succeed? or did he he not witness their ID properly?
Transparency of the alleged behaviour can help the industry and public understand warning signs or patterns that they should avoid.
I just read the order (it is available online).
The aggrieved person seems to be Australian Super because he assisted several of his clients access their super because of ‘hardship’. All the clients seem to have agreed to the process, though not the detailed steps (which would be normal in most cases where the adviser assists with processing docs). Many of the clients were indigenous people living in remote areas who have not complained.
The fees were agreed beforehand and were a flat fee ($500-1500), so may have been a high percentage of the sums – $ 5000-7000 withdrawn.
There are unproven issues around whether he impersonated clients when talking to Australia Super (like Sam Henderson’s staff did) – he says the client was present, or whether he forged the clients signatures.
All the money withdrawn was place in one of his accounts and then remitted to the clients after deducting agreed fees which was proved (not sure why Australian Super allowed this anyway, unless the client had signed off).
Still, while unproven, he is damned for life. His professional reputation is shot and even is he wins his case.
It demonstrates how easy it is to destroy an adviser.
I had met an adviser in Adelaide who was charged and who finally won her case on appeal (she represented herself as she had no money for a lawyer). She is still in the industry but her business is about 1/10 of what it was, it has lost her house, properties and most of her wealth saved over an 25 year career, her husband’s health, estranged some of her children etc. Her comment was ‘if they want to get you, they will find a way’.
Disgraceful conduct, bringing shame to the community and financial planners.
What drives people to behave like this? They must know they will be caught eventually, or do they have a desire to harm people and be punished? Perhaps a psychological evaluation should be mandatory before getting a license.
Guilty is he? Thanks for letting everyone know before the trail. Well done.
The principle that only applies to us advisers sadly….”Guilty until proven innocent”.