Ross Andrew Hopkins of Killara, NSW, has been sentenced in the District Court of New South Wales to a maximum period of six years’ imprisonment, with a non-parole period of four years.
Following an ASIC investigation, Mr Hopkins, a former financial adviser, was convicted of 15 dishonesty offences under the Corporations Act, committed when he was the sole director of QWL Pty Ltd (QWL).
Between 14 October 2016 and 8 October 2019, Mr Hopkins was a financial adviser entrusted by his clients to manage their self-managed superannuation accounts. The regulator found Mr Hopkins had almost complete control of his clients’ superannuation which allowed him to transact on their accounts.
Over a period of nearly three years, Mr Hopkins misappropriated approximately $2.9 million of his clients’ funds without their knowledge.
Court documents revealed Mr Hopkins used his clients’ funds for his own benefit, such as holidays, rent, paying his own credit card debts and repaying personal loans.
“Mr Hopkins lied to his clients, and the court’s decision demonstrates the seriousness of this conduct. Financial advisers must be open and honest with their clients, and if they aren’t, they face serious consequences,” ASIC commissioner Danielle Press said.
“Financial advisers should always allow clients to have direct access to information about their own investments. If this is not occurring, clients should contact ASIC with their concerns.”
In delivering the sentence, acting District Court Judge Wood QC found Mr Hopkins was a “trusted financial adviser”, managing funds pretending it was business-like, lawful and profitable. Each of the victims trusted and relied on him for his expertise. Some considered him a friend.
His Honour also remarked that Mr Hopkins’ behaviour was “deeply stupid” but noted that “being stupid is no defence or mitigation”. It was also observed that Mr Hopkins’ conduct “involved positive steps to avoid detection and numerous misrepresentations and concealments”.
Reparation orders were sought with respect to the losses suffered and judgment on this aspect was reserved until 7 July 2021.
Mr Hopkins is also automatically disqualified from managing a corporation for five years.
Mr Hopkins had previously pleaded guilty to all charges.
The matter was prosecuted by the Commonwealth Director of Public Prosecutions after an investigation and referral of a prosecution brief from ASIC.
QWL, which has held an Australian financial services licence since 1 January 2004, provided QWL clients with financial advice including dealing in securities and advising on self-managed superannuation funds.
ASIC’s investigation into Mr Hopkins and QWL commenced in 2019 in response to allegations that QWL had failed to assist the Australian Financial Complaints Authority in resolving client complaints.
On 4 November 2019, ASIC obtained orders and undertakings restraining Mr Hopkins and QWL from dissipating assets or providing financial services to clients.
On 18 November 2019, ASIC obtained an extension of those orders until 25 May 2020, with a further extension obtained until 23 November 2020.
On 19 March 2021 (prior to the matter returning to court on 22 March 2021), ASIC, with Mr Hopkins’ and QWL’s consent, obtained an additional extension of the financial services restraint orders against Mr Hopkins and QWL until 27 September 2021, with a directions hearing listed for 20 September 2021 at the Supreme Court of New South Wales.
I could imagine ASIC suing the AFS for failing to adequately monitor & supervise the advisor, only to pocket the whole sum of the “infringement” penalty and walk away with several hundred thousand whilst the actual SMSF victims are left fighting for their money. Another profitable outcome for ASIC & the government where THEY profit from other people’s loss and misfortune – where is the justice in that???
This can’t be true, he was ‘independent’?
He obviously hasn’t passed the FASEA exam otherwise his morals and ethics would have been corrected and this would never have happened. Fortunately after 1/1/2022 this will never happen again.
Another one that was forwarded onto ASIC – asleep once more
Did the clients get the $2.9m back would be the most important question.
Another one – there can’t be too many financial advisers left now.
They’ve all become accountants, its harder to get sued that way.
If he’d murdered his wife and said she hit him first he’d been unlucky to get three years
There’s no excuse for this behaviour, stealing from clients, breaching trust. I hope he “likes” bubba. He deserves it.
Higher standards apply to those that offer advice and are beholdent to their clients best interests. Criminal assault matters are equally egregious and deserve severe penalties but should not be compared to a breach of professional trust.
Yet he should get more in that instance. Not a very good comparison