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13-023MR ASIC obtains court orders against Sydney financial adviser
ASIC has obtained interim court orders against Sydney financial adviser, Mr Gabriel Nakhl.
Mr Nakhl provides financial advice through his Australian financial services licensed company, SydFA Pty Limited (SydFA).
The orders restrain Mr Nakhl, of Illawong, New South Wales, from disposing of, dealing with or otherwise diminishing certain assets, except in limited circumstances.
The orders were obtained ex parte on 31 January 2013, and extended on Monday 4 February 2013 until 29 April 2013.
ASIC alleged Mr Nakhl advised some clients of SydFA to either give, or loan him money, so he could invest it and pay them a fixed return. Mr Nakhl gave clients a document to sign for this arrangement initially entitled 'Fixed Interest Security' and later 'Deed of Loan'. In some cases, the clients were advised to use money from their self-managed superannuation funds.
ASIC is concerned that Mr Nakhl may not have used investors’ money solely for the purposes represented to investors, but may have also used it for other purposes.
The matter returns to the Supreme Court of New South Wales on 29 April 2013. ASIC's investigation into the conduct of Mr Nakhl is continuing.
Editor's note 1:
On 29 April 2013 ASIC, with Mr Nakhl's consent, obtained an:
extension of the interim orders against Mr Nakhl until 26 August 2013, and
increase in the amount frozen by the interim orders, from $2,963,837.79 to $7,715,479.57.
The matter returns to the Supreme Court of New South Wales on 26 August 2013. ASIC's investigation into Mr Nakhl's conduct is continuing.
Editor's note 2:
On 26 August 2013 ASIC, with Mr Nakhl's consent, obtained an extension of the interim orders against Mr Nakhl until 30 September 2013, at which time the matter will return to court. ASIC's investigation into Mr Nakhl's conduct is continuing.
Editor's note 3:
On 30 September 2013 ASIC, with Mr Nakhl's consent, obtained an extension of the interim orders against Mr Nakhl until 11 November 2013, at which time the matter will return to court. ASIC's investigation into Mr Nakhl's conduct is continuing.
Editor's note 4:
became a bankrupt and placed SydFA into liquidation on 2 September 2013. If you have any questions in relation to Mr Nakhl's bankruptcy or the liquidation of SydFA, please contact David Solomons of de Vries Tayeh on (02) 9633 3333.
offered ASIC an enforceable undertaking, on 8 November 2013, not to provide financial services again or to manage corporations for 15 years (refer: 13-313MR).
On 11 November 2013, with Mr Nakhl's consent, ASIC applied to have the proceedings dismissed. The court dismissed the proceedings and, accordingly, the orders lapsed.
ASIC's investigation into Mr Nakhl's conduct is continuing.
Editor's note 5:
On 20 November 2013, ASIC cancelled the SydFA's Australian financial services (AFS) licence.
Section 915B(3)(b) of the Corporations Act 2001 allows ASIC to suspend or cancel an AFS licence held by a body corporate if the body, among other things, becomes an externally-administered body corporate. SydFA, being a company in liquidation, is an externally-administed body corporate.
As part of the licence cancellation, ASIC imposed conditions that SydFA maintain its membership of an external dispute resolution service.