Financial planner deceives investors to steal millions of dollars
Date published
March 2019
Relevant impacts: Financial impact, human impact and industry impact
A financial planner lied to his clients by falsely stating he had invested their funds and that their investments were performing well. However, rather than investing $5.1 million of his client's funds, the financial planner used them as he pleased. The man was found guilty of 8 counts of fraud under the Corporations Act 2001 (Cth) and an additional 4 counts of fraud under the Crimes Act 1914 (Cth). He was sentenced to 10 years in prison.
Related fraudster personas
Related countermeasures
Assess the integrity of new employees, contractors or third parties such as by having entry level checks, probationary periods, suitability assessments or security vetting.
Make sure a manager, independent person or expert oversees actions and decisions. Involving multiple people in actions and decisions increases transparency and reduces the opportunity for fraud.
Allow clients, staff and third parties to lodge complaints about actions or decisions they disagree with. This may identify fraud or corruption as a cause for complaints, such as a failure to receive an expected payment.
Internal or external audits or reviews evaluate the process, purpose and outcome of activities. Clients, public officials or contractors can take advantage of weaknesses in government programs and systems to commit fraud, act corruptly, and avoid exposure.
Investigate fraud in line with the Australian Government Investigation Standards (AGIS).
These are penalties for customers, staff or third parties that commit fraud or do not comply with rules, processes and expectations.
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