Financial services business operator hit with dishonest conduct charges

Debt Wipeout business operator David Gregory Murphy has been charged with engaging in dishonest conduct while carrying on a financial services business and making false or misleading statements.

According to a statement released by ASIC on Wednesday, Mr Murphy is alleged to have represented to consumers that he could discharge existing debts in return for an upfront ‘swap’ payment of a percentage of the outstanding debt through advertisements for Debt Wipeout on billboards, websites and in person.

ASIC said that consumers then allegedly paid the ‘swap’ payment to Mr Murphy, but he could not, and did not, discharge their debts.

Furthermore, it is alleged that Mr Murphy published statements in Shopa Docket advertisements between August 2019 and August 2020 that suggested Debt Wipeout could wipe out debts for only 15 per cent or 25 per cent of the outstanding balance, even though he knew, or ought to have known, that such a statement was false or misleading.

“ASIC urges those who may have engaged Mr Murphy’s services believing he would discharge their debts to seek independent legal advice,” the corporate regulator said.

Mr Murphy appeared at Downing Centre Local Court in NSW on 26 April and the matter is next listed for mention on 3 May.

Meanwhile, the maximum penalty for an individual person found guilty of making false and misleading statements is up to 15 years imprisonment, a fine of $999,000 or three times the total value of the benefit received (whichever is higher), or both.

A year ago, the corporate regulator also obtained additional orders by consent in the Federal Court restraining certain other parties from carrying on, promoting or providing referrals to any business associated with Mr Murphy or another party, where consumers pay for their debts to be discharged with a non-cash payment.

Jon Bragg

Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.