03-137 Former financial adviser jailed
Monday 28 April 2003
Mr Daryl John McGuire, a 41-year old former financial adviser of Cleveland, Queensland (formerly of Mt Barker, South Australia) was today sentenced in the Brisbane District Court to three years imprisonment, to be released after 12 months on a $3,000, four-year good behaviour bond.
Mr McGuire pleaded guilty in the Cleveland Magistrates Court on 13 December 2002 to seven charges of fraudulently inducing a person to deal in securities. The charges were laid following an investigation by the Australian Securities and Investments Commission (ASIC).
Mr McGuire was previously an authorised representative with Moneytrends Pty Ltd between 23 June 1999 and 31 October 2000.
ASIC alleged that between 22 December 1999 and 5 July 2000, Mr McGuire caused BT Funds Management Ltd to redeem units valued at $206,950, when he only had authority to redeem part of this amount.
ASIC further alleged that Mr McGuire’s client was deprived of $180,916 of the redeemed amount as a consequence of Mr McGuire’s conduct.
The investment in the units was for the purpose of generating income for payment of an elderly man’s nursing home expenses.
ASIC’s investigation found that Mr McGuire had requested one of the man’s sons, who held a power of attorney, sign blank pieces of paper, thereby enabling Mr McGuire to withdraw funds in excess of the authorised amount.
Mr McGuire’s fraudulent redemption of the units was discovered after the nursing home sent the man’s son overdue accounts for outstanding nursing home expenses.
Moneytrends has cooperated with ASIC to ensure that Mr McGuire’s client will be compensated.
‘This decision shows that financial advisers who misuse their position for personal gain at the expense of their clients will be punished by the Courts. ASIC will continue to pursue dishonest advisers and have them not only removed from the industry, but brought before the Courts’, ASIC’s A/Director Enforcement, Mr Mark Steward said.
On 5 April 2002, ASIC accepted an enforceable undertaking from Mr McGuire who has undertaken to never again act as a representative of a securities dealer, investment adviser or holder of an Australian Financial Services Licence (AFSL), nor to apply for an AFSL.
The matter was prosecuted by the Commonwealth Director of Public Prosecutions.
ASIC Website: Printed 01/06/2009
