ASIC takes action against NSW financial adviser
The Association of Securities and Investment Companies (ASIC) has commenced proceedings in the Federal Court of Australia against New South Wales financial adviser Graeme Walter Miller and three related companies.
The case against Miller is be heard today in the Federal Court in Brisbane.
The companies involved are:
- 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 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 Miller from managing corporations.
ASIC’s investigation in the matter is continuing further, the regulator said.