Appearing in Sydney’s Downing Centre Local Court today, Walter John (Wally) Fullerton-Smith haced allegations he misled an elderly couple with the intent to obtain a financial advantage for himself and his wife.
Mr Fullerton-Smith was a financial adviser at collapsed firm Storm Financial and a former Queensland and Australian representative rugby league player.
“The conduct allegedly occurred when Mr Fullerton-Smith was procuring the couple’s units, valued at approximately $706,436.94, in an MLC MasterKey Unit Trust as security for the trust margin loan account,” said an ASIC statement.
“Specifically, it is alleged it was implied the investment would be safe if the couple signed documents authorising a third party mortgage over it as security for a proposed loan to either Mr Fullerton-Smith and his wife or The Young Trust, of which he was the trustee and he and his wife were primary beneficiaries, while omitting to inform them of the true nature and effect of the documents.”
The former adviser did not enter a plea and has surrendered his passport to ASIC.
In November 2012, he was banned for life from providing financial services.
More to come.
When under financial pressure and temptation rears it’s head it quickly becomes too much for many which is a great shame. How did his clients fare? Were they fully compensated? If not, how can I continue to justify referring people to financial planners?
Laws never have been successful in stopping illegal activity. You can’t legislate to stop people from doing what they already know to be wrong. Be murder, theft or fraud.
I know I bang on about it a bit, but exactly how would ‘enshrinement’ have stopped this from happening exactly….?
Yeah, I thought so – not at all.
Crooked or deceptive conduct will always happen in any and every industry and one more bit of terminology is not a safe guard if the individual’s intent to do wrong is there.
I hope his PI underwriter has an understanding personality! Much to explain on his claim form