Former director charged with dishonest conduct

In a statement on Tuesday, the Australian Securities and Investments Commission (ASIC) said that Russell Sandiford of Rockdale in NSW has been charged with dishonest conduct in relation to a financial product or service.

Following an investigation into Mr Sandiford and his company Reiwa-Capital, ASIC alleged that Mr Sandiford obtained $459,489.70 from 79 clients between 3 January 2020 and 20 June 2022.

“ASIC alleges Mr Sandiford used the funds for his own benefit rather than for investment purposes as had been agreed with his clients. At the time of offending, it is alleged Mr Sandiford was not licensed to provide financial product advice,” ASIC said.

The regulator noted that engaging in dishonest conduct in relation to a financial product or financial service in the course of carrying on a financial services business is an offence contrary to section 1041G of the Corporations Act with section 1311.

The maximum penalty for the charge is 15 years imprisonment, or the greater of $945,000 or a fine of three times the total value of the benefits, or both.

The matter has been adjourned to 18 April at the Downing Centre Local Court for further mention and is being prosecuted by the Commonwealth Director of Public Prosecutions following a referral from ASIC.