The Australian Securities and Investments Commission (ASIC) has permanently banned Ms Michelle Louise Eggmolesse, from Gladstone, Queensland, from acting as a representative of a dealer or an investment adviser.

Ms Eggmolesse was banned from the securities industry after ASIC formed the view that she had not performed her duties as an authorised representative honestly, efficiently and fairly.

An ASIC investigation found that Ms Eggmolesse had breached the Corporations Act by using a client’s money for her own benefit, while falsely advising her client that the investment still existed.

ASIC was concerned that Ms Eggmolesse’s conduct demonstrated she was not of good fame and character, and that she may not perform her duties as an authorised representative honestly, efficiently and fairly in the future.

Ms Eggmolesse was a former representative of Professional Investment Services Pty Ltd from 4 October 2000 to 24 May 2002.

ASIC’s investigation found that Ms Eggmolesse had arranged for client funds to be paid into her personal bank account, which were later paid into an account held with a fund manager, established in Ms Eggmolesse’s own name, as trustee for her client. These funds were subsequently redeemed by Ms Eggmolesse for her own benefit, without the client’s consent.

Professional Investment Services Pty Ltd brought the matter to ASIC’s attention in May 2002, after becoming aware of Ms Eggmolesses’s conduct, and has subsequently repaid all money to the client.

‘This is yet another example of ASIC taking action to protect the rights of investors from investment advisers who deal improperly with their clients money’, ASIC Director Enforcement, Mr Allen Turton said.