Former financial adviser David Valvo was sentenced in the Downing Centre District Court on 12 February 2025 for engaging in dishonest conduct in the course of carrying on a financial services business, contrary to s 1041G of the Corporations Act 2001 (Cth).
Between July 2019 and January 2020, Mr Valvo dishonestly obtained $110,000 from his clients' superannuation accounts.
Mr Valvo was convicted and sentenced to three years imprisonment, suspended upon the condition that he enter into a recognizance that he will comply with conditions to be of good behaviour for five years, pay a pecuniary penalty of $20,000 and make reparation to Oasis Fund Management Limited, the trustee of the clients' Wealthtrac superannuation fund, for its reimbursement of Mr Valvo's clients for their losses.
ASIC Deputy Chair Sarah Court said, 'Instead of showing the honesty and integrity required of someone who works in the financial services sector, Mr Valvo's actions betrayed the trust of his clients and caused them financial harm. This sentence demonstrates the seriousness of the misconduct. ASIC will continue to take action to protect the superannuation assets of consumers.'
An ASIC investigation identified that Mr Valvo submitted ad hoc adviser fee forms for 12 clients which purported to authorise withdrawals from their Wealthtrac superannuation accounts.
Mr Valvo's clients had no knowledge of the ad hoc fees, did not sign the forms and did not consent to the withdrawal of the fees from their accounts. ASIC's investigation showed that Mr Valvo had created fictitious client file notes allegedly detailing conversations which purported to record some of his clients' consent to his withdrawal of the ad hoc fees. Mr Valvo also charged the majority of these clients ongoing monthly fees at the time of the unauthorised withdrawals.
In sentencing the judge remarked that Mr Valvo was 'clearly in a position of trust and he broke the trust of the 12 victims for whom he was supposed to be providing financial advice and assistance.'
Mr Valvo's guilty plea was taken into account by the Judge when handing down sentence.
The matter was prosecuted by the Office of the Director of Public Prosecutions (Cth)following a referral from ASIC.
Background
Mr Valvo's offending occurred between July 2019 and January 2020.
On 5 July 2023, ASIC took civil action against Mr Valvo and obtained orders to prevent him from leaving the country and to preserve his assets and those of his company, Your Financial Freedom Pty Ltd (23-226MR).
On 14 November 2023, the asset preservation orders were continued by the Federal Court. The travel restraint orders expired on 31 March 2024.
On 2 April 2024, Mr Valvo appeared in the Downing Centre District Court charged with 12 counts of dishonest conduct contrary to s1041G of the Corporations Act 2001 (Cth) (24-064MR). The maximum penalty for an offence contrary to s 1041G is imprisonment for 15 years and/or the greater of a fine of 4,500 penalty units or three times the benefit derived if that can be determined.
On 16 October 2024, Mr Valvo entered a guilty plea to one combined charge of dishonest conduct contrary to s 1041G in relation to the offending against all 12 victims.
On 8 April 2025, the asset preservation orders were varied by the Federal Court to enable Mr Valvo to pay the pecuniary penalty of $20,000 and to make reparation to Oasis Fund Management Limited. Those amounts have been paid.
ASIC's Moneysmart website can help consumers identify the signs of a superannuation scam.
