NSW adviser cops six years jail for ‘Ponzi scheme’

Graeme Miller, a former adviser and director of CFS Private Wealth, received the sentence on 31 July in Downing Centre District Court after pleading guilty in April to six counts of engaging in dishonest conduct in the course of carrying on a financial services business.

Miller, who operated out of the Northern Rivers town of Myocum, encouraged or facilitated the transfer of between $50,000 and $950,000 from 10 clients for investment purposes between 2013 and 2017.

He then used the funds for his own purposes and to meet business expenses, including payments made to other clients as dividend payments.

Acting Judge Woods of the Downing Centre District Court sentenced Miller to six years’ imprisonment, to be eligible for parole after serving four years.

In sentencing Miller, Judge Woods described his conduct as a “Ponzi scheme” involving a “significant breach of trust” and a “cruel and deceitful betrayal inevitably leading to financial disaster”.

Judge Woods also made reparation orders of approximately $1.78 million in favour of the 10 clients who were the subject of the charges against Miller.

Commenting on the case, ASIC deputy chair Daniel Crennan said Miller had been found to have systematically breached the trust of his clients over a long period, resulting in significant losses.

"As a financial adviser Mr Miller ought to have protected the interests of his clients," Mr Crennan said.

"His sentencing should send a strong message that such conduct will lead to individuals involved being brought before the court to face criminal charges."

The Commonwealth Director of Public Prosecutions prosecuted the matter after a referral from ASIC. Miller had previously been banned from providing financial services for 25 years in January 2019.