POWERED BY MOMENTUM MEDIA
Former Melbourne planner pleads guilty to dishonest SMSF conduct
A former Melbourne financial planner has pleaded guilty to three counts of engaging in dishonest conduct while running a financial services business.
Between 18 February 2015 and 12 March 2015, Bradley Grimm engaged in dishonest conduct on five occasions when he transferred monies between two of his clients’ self-managed superannuation funds (SMSFs) to three separate companies of which the was the sole director and had little market value:
- Thrive Lending Pty Ltd,
- Trade BTC Pty Ltd, and
- Beta Pharmacology Pty Ltd
On a further seven occasions between 5 November, 2015 and 11 November, 2015, Grimm dishonestly transferred shares and convertible notes owned by his clients’ SMSF to Equity Capital Partners Hedge Fund Pty Ltd, without adequately advising his client that it was a company of which he was the sole director and had a personal interest.
He also failed to advise his client that ASIC had sought the winding up of entities related to him, including Ostrava Equities Pty Ltd (which was authorised to provide financial advice and deal in financial products), and that he was banned from providing financial services by order of the Federal Court.
At the time of the offending, each breach of s1041G(1) of the Corporations Act carried a maximum penalty of 10 years imprisonment.
The charges followed ASIC’s successful action in the Federal Court for the winding up of Ostrava Equities Pty Ltd, Ostrava Asset Management Pty Ltd, Ostrava Securities Pty Ltd, Ostrava Wealth Management Pty Ltd, Beta Pharmacology Pty Ltd, Prometheus Capital Pty Ltd, Thrive Lending Pty Ltd, Trade BTC Pty Ltd and Equity Capital Partners Hedge Fund Pty Ltd (16-286MR and 18- 360MR))
He was legally represented and his plea followed the listing for trial of the criminal charges against Grimm to commence on 18 January, 2023.
The matter was listed in the Victorian County Court on 14 April, 2023 for plea and sentencing hearing. The Commonwealth Director of Public Prosecutions is prosecuting the matter after a brief was referred by ASIC.
AUTHOR
Laura Dew
Laura Dew is editor at Super Review. Prior to joining SR, she spent five years working at Investment Week in the UK covering asset and wealth management.
Recommended for you
A recent NSW Supreme Court decision is an important reminder that while super funds may be subject to restrictive superannuation and tax laws, in essence they are still a trust and subject to equitable and common law claims, says a legal expert.
New research from the University of Adelaide has found SMSFs outperformed APRA funds by more than 4 per cent in 2021–22.
The SMSF Association has made a number of policy recommendations for the superannuation sector in its pre-budget submission to the government.
ASIC has sentenced former director Mudasir Mohammed Naseeruddin over four years imprisonment for ‘egregious conduct’ and dishonestly obtaining client funds from six investors’ SMSF accounts.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI First Close USD
66.99 3 y p.a(%)
2
Hills International
63.66 3 y p.a(%)
3
Acadian Global Equity Long Short Class A
36.33 3 y p.a(%)
4
CFS FC Acadian Global Equity Long Short
35.96 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
32.23 3 y p.a(%)
Add new comment