A former financial adviser and director of two financial services organisations has been jailed for six years for the misappropriation of $1.865 million of client funds invested through SMSF arrangements.
Following an investigation by the Australian Securities and Investments Commission (ASIC), New South Wales-based Graeme Miller was sentenced to six years’ imprisonment after pleading guilty to six counts of engaging in dishonest conduct in the course of carrying on a financial services business. He will be eligible for parole after serving four years.
The charges related to 10 clients from whom Miller misappropriated funds of between $50,000 and $950,000 under the guise of investing on their behalf. Four counts related to funds invested with Miller through client SMSFs.
Of the $1.865 million in misappropriated client funds, $987,000 was transferred to bank accounts and credit cards held by Miller and his family members, $318,500 was used to pay dividends, interest or return of capital to other clients in relation to their investments with Miller, $135,000 was used to pay other personal and business expenses and $27,000 was withdrawn in cash or transferred overseas.
In handing down the sentence in Sydney’s Downing Centre District Court, Judge Woods said Miller’s conduct was a “cruel and deceitful betrayal inevitably leading to financial disaster”.
Woods also ordered reparations of $1.777 million in favour of the 10 clients from whom Miller misappropriated funds.
ASIC deputy chair Daniel Crennan said: “As a financial adviser, Mr Miller ought to have protected the interests of his clients. His sentencing should send a strong message that such conduct will lead to individuals involved being brought before the court to face criminal charges.’
