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Wednesday 28 September 2016

16-327MR Former financial adviser charged over fraud

Former financial adviser, Gabriel Nakhl, appeared in the Local Court of New South Wales yesterday on 19 charges brought by ASIC of engaging in dishonest conduct with investor funds.

ASIC alleges that Mr Nakhl, of Illawong, NSW knowingly engaged in dishonest conduct in relation to twelve investors by:

  • misleading them about the investments he would make on their behalf and on behalf of their self-managed superannuation funds, including how he would invest their money and the risks and returns of the investments he recommended;
  • using money provided to him by investors, including money from investors' self-managed superannuation funds, for purposes other than those he said he would use it for;
  • telling investors that their investments were performing well when this was not the case; and
  • attempting to cover-up and conceal his wrongdoing.

The alleged conduct occurred between March 2009 and March 2011 while Mr Nakhl was an authorised representative of Australian Financial Services Limited (in liquidation) and from about March 2011 to about September 2013 while he was the sole director of SydFA Pty Ltd (in liquidation).

The charges were brought against Mr Nakhl following an ASIC investigation.

Mr Nakhl did not enter a plea but asked for an adjournment to obtain legal advice.

The matter was stood over until 11 October 2016.

The Commonwealth Director of Public Prosecutions is prosecuting the matter.

Background

Mr Nakhl has been charged with 19 counts under section 1041G of the Corporations Act 2001 (Cth).

In February 2013, ASIC obtained court orders against Mr Nakhl preventing him from disposing of, dealing with or otherwise diminishing certain assets. See 13-023MR for more details.

In September 2013, Mr Nakhl became a bankrupt and placed SydFA Pty Ltd into liquidation.

In November 2013, ASIC accepted an enforceable undertaking from Mr Nakhl that permanently restricts him from providing financial services and restricts him from managing a corporation for 15 years. See 13-313MR for more details.

Editor's note 1: 

On 11 October 2016, the Local Court ordered ASIC to serve the brief of evidence on Mr Nakhl by 8 November 2016. The matter was adjourned for further mention on 22 November 2016.

Editor's note 2:

On 22 November 2016, the matter was further adjourned until 31 January 2017.

Editor's note 3:

On 31 January 2017, the matter was further adjourned until 14 March 2017. 

Editor's note 4:

On 14 March 2017, the matter was set down for a one day committal hearing on 8 June 2017 and a pre-committal hearing mention on 2 May 2017.

Editor's note 5:

On 2 May 2017, the matter was adjourned until 9 May 2017, when Mr Nakhl then waived his right to a committal hearing.  The matter is now listed in the District Court for mention on 19 May 2017.

Editor's note 6:

On 9 June 2017, the matter was listed for a six week trial commencing on 4 June 2018.

Editor's note 7:

On 8 June 2018, the trial date was vacated after Mr Nakhl pleaded guilty to to eight counts under section 1041G of the Corporations Act of being knowingly engaged in  dishonest conduct in relation to twelve investors. Mr Nakhl was  convicted in the District Court of New South Wales on all eight charges. The  matter has been listed for a three day sentence hearing commencing on 11 March 2019 (refer: 18-178MR).

 

 

 

Last updated: 26/07/2018 05:18