A former financial adviser has appeared in the Perth Magistrates Court over the alleged misappropriation of $4.1 million of her clients’ money.
Marion Joan Pearson was brought before the court on 21 August in relation to 136 stealing charges that allegedly took place between January 2009 and October 2013.
The appearance took place last week after the Australian Investments and Securities Commission (ASIC) was successful in having extradition orders secured from the New Zealand Supreme Court. Pearson moved to New Zealand in July 2014 after the corporate regulator commenced its investigation into her conduct as a financial adviser.
ASIC had already banned Pearson permanently from the financial services industry as a result of her conduct while she was an authorised representative of Ballast Financial Management from 1 November 2007 to 30 October 2013. The licensee revoked her authorised representative status on 30 October 2013.
In addition, Pearson was the sole director and shareholder of Colisa Pty Ltd, which was a corporate authorised representative of Ballast Financial Management.
The corporate watchdog’s investigation into Pearson’s activities found she had breached financial services law while providing advice for her SMSF clients.
Specifically, she was found to have engaged in dishonest conduct such as creating documents to disguise the fact clients’ money was being paid into Colisa’s bank account without their authority or knowledge.
Further, ASIC established she had engaged in misleading or deceptive conduct whereby she gave Ballast and her clients the impression monies had been allocated to investments when they had not been.
Under section 378 of the Western Australian Criminal Code, each of the 136 stealing charges Pearson is facing carries with it a maximum penalty of 10 years’ imprisonment if the offender has received the property in question with a power of attorney for the disposition thereof.
The Commonwealth Director of Public Prosecutions is handling the matter following an investigation and referral by ASIC.
Pearson has been remanded in custody until her next court date, set for 1 October.
