Adviser permanently banned for misusing client funds

In a statement on Friday, the Australian Securities and Investments Commission (ASIC) explained that it found Mr Nugara, the sole director of Skynet Financial Services from 2009 and 2019, misled his clients into believing they were investing in property developments across Melbourne, when in fact the purported developments did not exist. 

Mr Nugara obtained a total of $1.6 million from his clients by advising them to withdraw money from their existing superannuation funds and deposit it into self-managed super funds that he set up. But ASIC found that Mr Nugara used these funds for his own purposes, including to pay off his own personal debts.

According to the regulator, Mr Nugara’s conduct was “deliberate, repeated and extended over several years”.

“As a result of the ban, Mr Nugara is permanently prevented from providing any financial service, controlling an entity that carries on a financial services business and performing any function involved in carrying on a financial services business,” ASIC said.

Mr Nugara has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.

Between 2013 and 2017, Mr Nugara and Skynet Financial Services were authorised and corporate authorised representatives of Financial Services Partners.

ASIC added that Mr Nugara is currently in custody after being arrested by Victoria Police in October 2022 and charged with 35 counts of obtaining financial advantage by deception.