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18-132MR ASIC takes action against NSW financial adviser
ASIC has commenced proceedings in the Federal Court of Australia against New South Wales financial adviser Graeme Walter Miller and three related companies:
- CFS Private Wealth Pty Ltd, an Australian financial services licensee (CFS Private Wealth);
- Combined Financial Solutions Pty Ltd; and
- BDM Asia Pacific Pty Ltd (formerly known as CFS Corporation Pty Ltd), which is deregistered (CFS Corporation).
Following an investigation, ASIC alleges that Mr Miller:
- recommended that clients of CFS Private Wealth establish self-managed superannuation funds (SMSF) and use their SMSF funds to invest in CFS Corporation, of which Mr Miller was a director;
- used investor funds for personal use and to repay other investors in CFS Corporation;
- failed to keep proper records of client investments in CFS Corporation;
- continued to operate the bank account of CFS Corporation after it was deregistered;
- submitted illegitimate life insurance applications to insurers in order to receive commissions, in circumstances where the insureds had not instructed him to submit applications on their behalf and were not aware that he had done so; and
- may be continuing to provide financial services and/or raise funds from clients.
ASIC also alleges that the respondents appear to have insufficient assets to repay investors in CFS Corporation and that CFS Private Wealth has failed to lodge its financial accounts for the 2016 and 2017 financial years.
ASIC is seeking orders to:
- restrain Mr Miller from providing financial services;
- prevent the respondents from dealing with assets or investor funds;
- wind up the companies and appoint a liquidator; and
- disqualify Mr Miller from managing corporations.
The matter will be heard in the Federal Court in Brisbane on 10 May 2018.
ASIC's investigation is continuing.
ASIC's application for interim orders to restrain the respondents from providing financial services and dealing with their assets and investor funds was heard by the Court on 10 May 2018. Judgment is reserved.
Editor's note 2:
On 21 May 2018, the Court made orders restraining the respondents, until further order, from:
- carrying on any financial services business, including the investment business operated by the respondents;
- dealing with their assets; and
- dealing with investor funds.
The matter is listed for final hearing on 18 July 2018.
Editor's note 3:
The matter was heard by the Federal Court on 18 July 2018, with judgement reserved.
Editor's note 4:
Judgement was delivered by the Federal Court on 18 January 2019. See 19-009MR.