A former Sydney-based financial adviser has been convicted and sentenced to three years’ imprisonment for dishonestly obtaining $110,000 from his clients’ superannuation accounts.
David Mario Valvo was sentenced in the Downing Centre District Court on 12 February for engaging in the dishonest conduct between July 2019 and January 2020 when he was the director of Your Financial Freedom Pty Ltd.
The Australian Securities and Investments Commission (ASIC) stated its investigation found Valvo submitted ad hoc adviser fee forms for 12 clients that claimed to authorise withdrawals from their SMSF accounts administered by Wealthtrac.
“Mr Valvo’s clients had no knowledge of the ad hoc fees, did not sign the forms and did not consent to the withdrawal of the fees from their accounts,” ASIC said.
“[Our] investigation showed that Mr Valvo had created fictitious client file notes allegedly detailing conversations which purported to record some of his clients’ consent to his withdrawal of the ad hoc fees.
“Mr Valvo also charged the majority of these clients ongoing monthly fees at the time of the unauthorised withdrawals.”
While Valvo was convicted, his three years’ imprisonment was suspended on the condition he enter into a recognisance, comply with conditions to be of good behaviour for five years and pay a pecuniary penalty of $20,000.
He is also required to make reparation to Oasis Fund Management Limited, the trustee of the clients’ Wealthtrac superannuation fund, to reimburse the losses they suffered.
While Valvo’s guilty plea was considered during sentencing, the judge stated he was “clearly in a position of trust and he broke the trust of the 12 victims for whom he was supposed to be providing financial advice and assistance”.
The matter was prosecuted by the Commonwealth Office of the Director of Public Prosecutions following a referral from ASIC, which initially acted against Valvo in July 2023 when it obtained orders to prevent him from leaving the country and to preserve his assets and those of Your Financial Freedom.
He was charged with the 12 counts of dishonest conduct in April 2024 and pleaded guilty in October of that year to one combined charge of dishonest conduct in relation to offending against all 12 victims.
