Court to question Hobson’s choice

A former Sydney-based financial adviser faced a Sydney court this week charged with fraud following an ASIC investigation.

It is alleged that James Patrick Hobson, a senior financial adviser employed by Binma Pty Ltd, which trades as Noall & Co in North Sydney, defrauded four clients of more than $300,000 and attempted to defraud one of $120,000, over a five-month period.

A call to the company confirmed that Hobson no longer works for Noall & Co.

Hobson has been charged with four counts of fraudulent misappropriation of a valuable security under Section 178A of The Crimes Act (NSW) and one count of attempting to fraudulently misappropriate a valuable security under Section 178A and section 344A of The Crimes Act (NSW).

The Australian Securities & Investments Commission (ASIC) alleges that between March and August 2008, Hobson misappropriated $307,000 and attempted to misappropriate $120,000 of client funds whilst working for Noall & Co.

In each instance, it is alleged he advised clients to invest in international shares via the Skandia funds platform.

Anglo South African financial services company Old Mutual Group owned the Skandia platform at the time although its Australian operations were subsequently sold to IOOF Holdings in 2009.

It is alleged that Hobson did not invest funds on behalf of these clients as per their instructions, but instead used the funds for his own personal use.

The matter will return to court on 10 January 2012.

Hobson was granted conditional bail.

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