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03-211 South Australian adviser banned permanently
The Australian Securities and Investments Commission (ASIC) has permanently banned Mr David Paul Mudge, formerly of Windsor Gardens, South Australia, from acting as a representative of a securities dealer or an investment adviser.
The ban was made following Mr Mudge’s conviction for inducing a person to deal in securities by dishonestly concealing material facts. He was sentenced to 27 months jail, to be released after a year, upon entering into a good behaviour bond for 15 months.
The Adelaide District Court found that between September 1999 and October 2001, Mr Mudge presented an elderly client with eight documents to sign. On each occasion, he dishonestly concealed from his client that the documents authorised him to withdraw money from her investments for payment to him or his company, Davcal Pty Ltd.
Using this method, Mr Mudge dishonestly withdrew a total of $197,375 from the account of his client and used it for his own purposes.
‘Due to the serious nature of Mr Mudge’s conduct, ASIC has permanently prohibited him from giving investment advice or carrying on a securities business’, ASIC’s Director Enforcement, Mark Steward said.
‘ASIC will not tolerate advisers who use their positions for their own gains, and we will continue to take actions to protect the public from advisers who cannot be trusted in their industry’, he said.
Mr Mudge has a right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.