03-184 Adelaide financial adviser sentenced to jail
Wednesday 11 June 2003
Mr David Paul Mudge, a former financial adviser of Windsor Gardens, Adelaide, has today been sentenced in the District Court in Adelaide on a charge arising out of an investigation conducted by the Australian Securities and Investments Commission (ASIC).
Mr Mudge, was convicted and sentenced to 27 months imprisonment to be released after serving 12 months upon entering into a good behaviour bond for a further 15 months.
Mr Mudge had earlier pleaded guilty to inducing a person to deal in securities by dishonestly concealing material facts.
In sentencing, the Court took into account Mr Mudge’s cooperation with ASIC’s investigation and his early guilty plea.
ASIC alleged that between September 1999 and October 2001, Mr Mudge presented an elderly client with eight documents to sign. On each occasion, he dishonestly concealed from his client that the documents, in fact, authorised him to withdraw money from her investments for payment to Mr Mudge or his company, Davcal Pty Ltd.
Using this method, Mr Mudge dishonestly withdrew a total of $197,375 from the account of his client and used this sum for his own purposes.
ASIC successfully applied to the Federal Court for an order that the proceeds from the sale of property associated with Mr Mudge be frozen to aid in the recovery of funds, for the benefit of the elderly client. ASIC has also obtained an order, with the consent of Mr Mudge, that he pay his former client approximately $216,767, inclusive of interest.
As a result of this action, approximately $99,315 was recovered for the elderly client. The balance remains outstanding.
‘ASIC will continue to take action to protect investors from dishonest financial advisers who misuse clients’ money, and will seek not only compensation orders, but also criminal sanctions’, ASIC Director of Enforcement, Mr Mark Steward said.
The matter was prosecuted by the Commonwealth Director of Public Prosecutions.
ASIC Website: Printed 02/10/2010
