Former Adelaide financial adviser James Gibbs has pleaded guilty to 28 dishonesty offences committed when he was a financial planner and director of James Gibbs Investments Pty Ltd (JGI). JGI operated in Franklin St, Adelaide, ASIC said in a public statement.
ASIC alleged that between 20 August 2009 and 30 July 2016, Mr Gibbs stole approximately $4.88 million of funds that he was managing for his clients.
A number of clients had SMSFs, which Mr Gibbs was able to access via client bank accounts, stated ASIC.
ASIC also alleged that between 25 June 2012 and 30 July 2016, Gibbs created and used false documents, including banking documents and member statements.
The alleged misconduct occurred while Mr Gibbs and JGI were authorised representatives of Madison Financial Group Ltd.
ASIC said it became aware of the allegations as a result of a breach report by Madison.
Mr Gibbs appeared in the Adelaide Magistrates Court on 1 February 2019 and pleaded guilty to all offences. He was placed on bail and was remanded to appear in the committal court on 27 February 2019.
“He faces a maximum penalty of ten years imprisonment for each offence committed prior to May 2012, or 15 years imprisonment for each offence committed after that time,” the corporate regulator said.
The Commonwealth Director of Public Prosecutions is prosecuting the matter.
Says a lot for the SMSF Auditor !
A year ago ASIC would have given him a 5 year ban on advising.
28 counts and 10 years per offence. If they want get serious about rogue advisers he should get life in jail. He’ll be lucky to 10 years in total. 🙁
Theft usually starts small and steadily escalates over time. Clearly a moral failing on behalf of the man. These actions occur in all industries regardless of qualifications and probably the real answer comes down to better oversight and regular audit processes.
Warren my bet is he doesn’t get years in prison. If had broken into a place of business after hours and stole money he would. White collar criminals benefit from a double sided justice system.
Probably gambling – they are always the next big win away from paying it all back
It starts small and gets out of control
There is probably not much money left – the insurer will pay it all
I don’t understand how people like James, stealing their clients money, think they can get away with it. Clearly he did for several years but eventually someone will find discrepancies through an audit process or become suspicious of their conduct (what did he do with an extra $700,000 a year?) or that statements simply don’t add up. He likely faces years in prison not to mention the disgrace with family, friends and colleagues. I couldn’t imagine the shame and the loss of respect that he faces. Stories like this have been appearing frequently for years so why do people do it? You WILL get caught.