Adam Sanders Bank Victims 19 November 2013
The Australian Securities and Investment Commission (ASIC) has accepted an enforceable undertaking (EU) from Sydney financial adviser Gabriel Nakhl SydFA Pty Limited, which permanently prevents him from providing financial services after he used clients' cash on his sports car and motorbike business.
According to ASIC, Nakhl advised some clients, to use money from their self-managed superannuation funds (SMSFs), to send money for him to invest in a high interest rate account on their behalf. Mr Nakhl gave clients a document to sign for this arrangement initially entitled 'Fixed Interest Security' and later 'Deed of Loan'. The regulator said it is concerned Nakhl instead spent the money on, among other things, his private sports car and motorbike hire business and himself.
During a three year investigation into Nakhl's Sydney-based SydFA advisory business, which is now in liquidation, ASIC said it was concerned he had given unauthorised product advise, made false and misleading statements and engaged in misleading and deceptive conduct, including making statements about the returns clients could expect and the risks of the investments he promoted.
ASIC also said he failed to carry out his duties as a director with necessary care and diligence and improperly used his position as a director to gain an advantage for himself.
Nakhl has agreed to not manage a company for 15 years.
"Mr Nakhl breached the trust many investors placed in him," ASIC Deputy Chairman Peter Kell said.
"This EU also emphasises ASIC's recent focus on targeting misconduct within the SMSF sector.
"Setting up an SMSF is one of the most significant steps an investor can take, and where an individual or company's conduct unlawfully puts that investment at risk, ASIC will take action."
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