The prison sentence of accountant and former financial adviser Nicholas James Ellis of Valentine, NSW, is to be served by way of intensive corrections order (ICO), ASIC said in a statement.
In delivering the sentence, Judge Williams remarked that Ellis “provided information to investors that was untrue and caused those investors to act on that information”, and that, “had the true picture been disclosed, the investors may have been less forthcoming”.
As part of the ICO, Ellis will serve 12 months by way of home detention, subject to a further suitability assessment, and undertake 700 hours of community service.
Ellis pleaded guilty to the two charges on 4 August 2017. ASIC’s investigation found Ellis sent 10 letters and one email to a number of his clients for the purpose of raising investment funds to purchase a hotel in Tura, NSW, through his company, Tura Pty Limited.
The letters and email contained false and misleading statements in relation to the purchase of the hotel, ASIC said.
Ellis admitted to fraudulently misappropriating approximately $562,000 of client funds received by Tura Pty Limited, of which some of the funds were used to buy a house in Manly, NSW.
“Mr Ellis was a trusted financial adviser and accountant, who misled his clients and misused their funds for the benefit of his own business. Accountants and financial advisers are in a position of trust,” said ASIC commissioner Danielle Press.
“As demonstrated in this case, ASIC is prepared to take criminal action where trusted advisers misappropriate clients’ money.”
The matter will be back in court on 17 October 2019 for the purposes of determining Ellis’ suitability for home detention.
ASIC banned Ellis from providing financial services in 2013 for a period of six years.
Yep, this guy is a scum and deserves all he gets.
But for all you other scum who want to rip off clients and steal money… The only thing he did wrong in the eyes of the law and ASIC is that he didnt work for a bank. Had he been a banking executive he probably wouldnt even have been fired, and if he had been fired he would have instantly been hired by another bank.
The only ones who ever get in any trouble for anything are advisers whilst everyone else acts with impunity.
So his banning period ended in March this year…so now what? With everything an honest hard working and caring adviser has to do I guess he’ll just operate unlicensed?
“As demonstrated in this case, ASIC is prepared to take criminal action where trusted advisers misappropriate clients’ money.” Yes commissioner – still waiting for the big fish to face the music. Bit too hard for you?
The head is incorrect he was an accountant too…
“Mr Ellis was a trusted financial adviser and accountant, who misled his clients and misused their funds for the benefit of his own business. Accountants and financial advisers are in a position of trust,” said ASIC commissioner Danielle Press.
No mention of any bank…. usually some tenuous link is found. Does this mean he was independent?