The Australian Securities and Investments Commission (ASIC) has permanently banned Mr Christopher Despotelis, 47 years old of Docklands in Victoria, from providing financial services.

Mr Despotelis was Head of Custody and a responsible officer of Invia Custodian Pty Limited (Invia) from 11 March 2004 to 20 July 2004, when he was removed as a responsible officer. Invia is a wholly own subsidiary of Goldman Sachs JBWere Capital Markets Limited and provides a custody service to a broad range of investor clients.

ASIC found that between 24 June and 14 July 2004, Mr Despotelis misappropriated trust funds totalling $40,689 from Invia. Mr Despotelis asked employees of Invia, on three occasions, to sign cheques drawn on Invia’s bank accounts. These cheques were made out to a fictitious person, which he later altered to his own name.

ASIC banned Mr Despotelis after forming the view that he is unlikely to comply with financial services laws in the future.

Mr Despotelis has repaid the funds in full to Invia however his employment with Invia has been terminated.

‘ASIC is committed to protecting investors, and ensuring people feel confident that their money is safe’, ASIC’s Deputy Executive Director of Enforcement, Mr Mark Steward said.

‘ASIC will vigorously pursue those who are entrusted to manage client funds and in doing so, blatantly misuse their position for their own benefit’, Mr Steward added.

Mr Despotelis has the right to lodge an application with the Administrative Appeals Tribunal for a review of ASIC’s decision.