The Australian Securities and Investments Commission has permanently banned a New South Wales adviser and obtained interim court orders against the operators of two Queensland-based self-managed superannuation advice companies.
The regulator found Colin James Oberg, formerly operating out of offices in Miranda, NSW, withdrew over $1.55 million of client funds without their authorisation or approval.
Oberg was a financial adviser and authorised representative of Wealthsure Financial Services (Wealthsure) and took the money between September 2007 and October 2008.
“Mr Oberg claimed that he used the funds for an overseas investment which he placed through an associate,” said ASIC in a statement.
“According to Mr Oberg, he was told via text message from the associate to deposit the funds into the bank account of a third person. From there, the funds would be transferred to the overseas institution.
“Mr Oberg stated that he did not know who the third person was or why the funds needed to be deposited into that account.”
Oberg also did not know the name of the overseas bank or institution where the funds were to be placed, did not have any documentation in relation to the arrangement and did not know how returns would be generated.
The regulator concluded that Oberg acted dishonestly when taking funds from his clients’ accounts and was satisfied that a permanent banning was appropriate.
“There is no place in the financial industry for individuals who use client funds dishonestly and ASIC will act promptly to remove those who do,” said ASIC commissioner Peter Kell.
ASIC was alerted to Oberg’s conduct by Wealthsure in October 2010, by which time Wealthsure had revoked his status as its authorised representative.
Oberg has the right to lodge an application with the Administrative Appeals Tribunal for a review of ASIC’s decision.
Royal and Active wrong?
In related news, ASIC has obtained interim court orders against the operators of two Queensland-based self-managed superannuation advice companies, preventing them from carrying on some of their activities.
The regulator expressed a number of concerns, including that they had misled investors about their investments.
ASIC’s investigation has so far found Royale Capital Pty Ltd and ActiveSuper Pty Ltd raised $4.75 million from more than 200 investors.
Central to the regulator’s concerns are that both Royale and Active were offering their self-managed superannuation fund (SMSF) clients shares in companies based in the US and the British Virgin Islands when the appropriate disclosure documents had not first been lodged with ASIC.
ASIC understands that representations were made to SMSF clients that these foreign companies were to use the funds raised to purchase distressed properties in the US.
The matter will return to the Federal Court for further hearing on July 27.
