Russell Sandiford, of Rockdale, New South Wales has appeared in the Downing Centre Local Court charged with dishonest conduct in relation to a financial product or service.
Following an ASIC investigation into Mr Sandiford and his company, Reiwa-Capital Pty Ltd, it is alleged that Mr Sandiford obtained $459,489.70 from 79 clients between 3 January 2020 and 20 June 2022.
ASIC alleges Mr Sandiford used the funds for his own benefit rather than for investment purposes as had been agreed with his clients. At the time of offending, it is alleged Mr Sandiford was not licensed to provide financial product advice.
The matter was adjourned to 18 April 2023 at the Downing Centre Local Court for further mention.
The matter is being prosecuted by the Commonwealth Director of Public Prosecutions following a referral from ASIC.
Engaging in dishonest conduct in relation to a financial product or financial service in the course of carrying on a financial services business is an offence contrary to section 1041G of the Corporations Act with section 1311.
The maximum penalty is 15 years imprisonment or the greater of $945,000 or a fine of three times the total value of the benefits, or both.