A Sydney-based SMSF adviser has pleaded guilty to multiple dishonesty offences related to the misappropriation of $2.9 million of client funds.
In a case heard at Sydney’s Downing Centre Local Court today, Ross Andrew Hopkins of Seaforth, Sydney, pleaded guilty to 15 offences under the Corporations Act and was committed to the Sydney District Court for sentencing.
The Australian Securities and Investments Commission (ASIC) stated the case against Hopkins alleged that between 14 October 2016 and 8 October 2019, he made 167 unauthorised transactions for 13 QWL clients amounting to $2,938,750 and these funds were transferred into his personal accounts, or accounts otherwise controlled by him, and used for his own benefit.
The regulator also alleged he made false representations about the nature of the unauthorised transfers to conceal his dishonest conduct and avoid detection. Following an ASIC investigation, he was charged with dishonesty offences and then entered into an early guilty plea.
At the time of his behaviour, he was the sole director of QWL Pty Ltd, which had held an Australian financial services licence since 1 January 2004 and provided financial advice, including dealing in securities and advising on SMSFs.
ASIC stated it began its investigation into Hopkins and QWL in 2019 after allegations were raised that QWL had failed to assist the Australian Financial Complaints Authority in resolving client complaints.
On 4 November 2019, ASIC obtained orders and undertakings restraining Hopkins and QWL from dissipating assets or providing financial services to clients, and later that same month obtained an extension of those orders until 25 May 2020, with a further extension obtained until 23 November 2020.
Hopkins has been granted conditional bail and the matter, which is being prosecuted by the Commonwealth Director of Public Prosecutions following a referral from ASIC, has been adjourned to the Sydney District Court for mention on 18 December 2020.
