Russell Sandiford, of Rockdale, New South Wales has appeared in the Downing Centre Local Court charged with dishonest conduct in relation to a financial product or service.

Following an ASIC investigation into Mr Sandiford and his company, Reiwa-Capital Pty Ltd, it is alleged that Mr Sandiford obtained $459,489.70 from 79 clients between 3 January 2020 and 20 June 2022.

ASIC alleges Mr Sandiford used the funds for his own benefit rather than for investment purposes as had been agreed with his clients. At the time of offending, it is alleged Mr Sandiford was not licensed to provide financial product advice.

The matter was adjourned to 18 April 2023 at the Downing Centre Local Court for further mention.

The matter is being prosecuted by the Commonwealth Director of Public Prosecutions following a referral from ASIC.

Background

Engaging in dishonest conduct in relation to a financial product or financial service in the course of carrying on a financial services business is an offence contrary to section 1041G of the Corporations Act with section 1311.

The maximum penalty is 15 years imprisonment or the greater of $945,000 or a fine of three times the total value of the benefits, or both.

Editor's note:

On 18 April 2023, the matter was adjourned to 13 June 2023. 

Editor's note 2:

On 13 June 2023, the matter was adjourned to 8 August 2023.

Editor's note 3:

On 20 June 2023, the Court varied the bail conditions that were imposed on Mr Sandiford on 18 April 2023.  

Mr Sandiford has been granted bail with conditions. Those conditions include, among other things, that he is:

1. Not to provide unlicensed financial services; and

2. Not to accept or request payment from persons pursuant to or relating to the provision of unlicensed financial services.

3. Not to approach or attempt to approach any witnesses or clients or former clients of Reiwa-Capital Pty Ltd, directly or indirectly, other than through his legal representatives.

4. Not to communicate by any means, including through a third party, with:

- Any witnesses

- Any person whom the defendant has received notice is to be a prosecution witness or likely to be a prosecution witness,

- Any family members of the persons referred to in (a) or (b), except through his legal representatives.

Editor's note 4:

On 8 August 2023, the matter was adjourned to 19 September 2023.

Editor's note 5:

On 19 September 2023, the matter was adjourned to 3 October 2023.

Editor's note 6:

On 3 October 2023, the charges against Mr Sandiford were amended.  

The charges now allege that Mr Sandiford engaged in dishonest conduct in relation to a financial product or service by obtaining $440,909.71 from 74 clients between about 2 January 2020 and 12 January 2022, and between about 28 March 2020 and about 29 June 2022.

The matter was further adjourned to 28 November 2023 to allow the parties to engage in case conferencing.

Editor's note 7:

On 28 November 2023 the matter was adjourned to 19 December 2023 to allow time to hold a further case conference.

Editor's note 8: 

On 19 December 2023 the matter was adjourned to 30 January 2024 to allow the case conference to continue.

Editor's note 9:

On 30 January 2024 the matter was adjourned to 13 February 2024 for committal.