Graeme Walter Miller, a former financial adviser and director of Australian financial services licensee CFS Private Wealth Pty Ltd, was sentenced on 31 July 2020 to six years’ imprisonment for misappropriating $1.865 million of client funds, following an ASIC investigation.
On 14 April 2020, Mr Miller pleaded guilty to six counts of engaging in dishonest conduct in the course of carrying on a financial services business, contrary to section 1041G of the Corporations Act 2001.
In a public announcement, ASIC said the charges relate to ten clients from whom Mr Miller encouraged or facilitated the transfer of between $50,000 and $950,000 by way of an investment for the benefit of the client.
“Mr Miller then misappropriated those funds for his own purposes. Four counts relate to funds invested with Mr Miller through self-managed superannuation funds held by the clients,” the Corporate Regulator stated.
Acting Judge Woods of the Downing Centre District Court sentenced Mr Miller to six years’ imprisonment, to be eligible for parole after serving four years.
In sentencing Mr Miller, Judge Woods described Mr Miller’s conduct as a “Ponzi scheme” involving a “significant breach of trust” and a “cruel and deceitful betrayal inevitably leading to financial disaster”.
Judge Woods also made reparation orders of approximately $1.777 million in favour of the ten clients who were the subject of the charges against Mr Miller.
Following the sentencing, ASIC Deputy Chair Daniel Crennan QC said Mr Miller has been found to have systematically breached the trust of his clients over a long period, resulting in significant losses.
“As a financial adviser Mr Miller ought to have protected the interests of his clients. His sentencing should send a strong message that such conduct will lead to individuals involved being brought before the court to face criminal charges,” said Mr Miller.
The Commonwealth Director of Public Prosecutions prosecuted the matter after a referral from ASIC.
Planners like other groups sometimes abuse the vulnerable who rely on them: doctors, priests, teachers, even parents…
Unfair to tar everyone with the same brush, yes. don’t publicists do exactly this when they glorify a whole group for the good work of some? Such asymmetry works.
One way to attack this intractable dileema: ensure the convicted culprit experiences the same penury the planner planned to put the victims in, by taking away all their assets and income. And those who defend them (lobby groups, lawyers…) should only be paid after the victims have been fully compensated.
Without such extreme remedy, the rule of law will remain rule by lawyers and lobbyists.
Most ordinary people have little idea about handling large sums of money. They haven’t the experience and they don’t bother to try to get it during their working lives. Lump sum super payouts, particularly, are heaven sent for con-men..con-persons? People think that that large payout on retirement is the answer to all their problems, it isn’t, it’s just the start of them. Most are just as likely to choose a FP on the basis of the colour of their eyes or their sales technique as they have no way of judging the quality of the info they are being given. Yes, I’m a cynic but it’s based on 40 years tax and accounting experience.
It wasn’t long enough !
Despite the overwhelming changes in regulation since FSR in 2000 to the most recent Royal Commission into the Financial Services sector, why does the the government or the regulators think that the perfect human being exists.
There will always be greedy bad apples in every walk of life.
Tarnishing a a whole industry and punishing all because of a few who discredit us all by their dishonesty and using draconian legislation to do it, isn’t the answer, should be obvious by now.
I am at a loss for words and solutions. How can we stop this type of thieving? How did the bloke take clients’ money? Did he have access to their accounts? Did the clients give him that access?