The Australian Securities and Investments Commission (ASIC) has permanently banned Mr Tony Zareei and Mr Tunde Doja from acting as representatives of a securities dealer or investment adviser, and from providing any financial services.

Mr Doja was formerly the sole director of Progressive Investment Securities Pty Ltd (Progressive) where Mr Doja and Mr Zareei promoted Australian growth timber products and other tax effective schemes to the clients of Progressive. Messrs Doja and Mr Zareei, who both reside in Sydney, were authorised representatives of a number of licensees including Australian Growth Managers Limited.

ASIC was concerned that both advisers had failed to perform their duties efficiently, honestly and fairly after recommending their clients invest in timber projects and wine projects without considering the investment objectives, financial situation or particular needs of their clients.

Many of their clients lived in Sydney’s south and western suburbs.

ASIC was also concerned that Messrs Doja and Zareei:

• failed to provide a prospectus to their clients or provided a prospectus after the client had signed an application to invest;
• failed to disclose commissions;
• failed to explain the nature of the investment and all costs and fees associated with the investment and/or made misleading statements about the costs and fees associated with the investment;
• requested clients sign blank or partially completed forms;
• provided financial services while unlicensed; and
• engaged in unconscionable conduct given the special disadvantages suffered by their clients due to their limited proficiency in English, inexperience in investing, lack of independent advice obtained, and their reliance and trust in their advisers.

ASIC’s Deputy Executive Director of Enforcement, Mr Allen Turton said financial advisers who took advantage of people and sought to gain financial benefit from other people’s lack of financial know-how would not be tolerated.

‘The lifetime bans imposed on these men illustrate that ASIC views such behaviour seriously, and that we will take action’, Mr Turton added.

Mr Zareei and Mr Doja have the right to lodge an application for review of this decision to the Administrative Appeals Tribunal.