A former Melbourne-based financial and SMSF adviser has pleaded guilty to three counts of engaging in dishonest conduct while running a financial services business.
Bradley Grimm admitted to having engaged in dishonest conduct on five occasions between 18 February 2015 and 12 March 2015 after transferring monies from two of his clients’ SMSFs into three companies that had little market value and of which he was the sole director.
The entities were Thrive Lending Pty Ltd, Trade BTC Pty Ltd and Beta Pharmacology Pty Ltd.
In addition, Grimm pleaded guilty to dishonestly transferring shares and convertible notes held in client SMSFs to Equity Partners Capital Hedge Fund without informing the trustees he was the sole director of the managed fund and had a personal interest in it. These transactions took place on seven occasions between 5 and 11 November 2015.
Further, Grimm conceded he did not let his clients know the Australian Securities and Investments Commission (ASIC) had sought to wind up entities related to him, including Ostrava Equities Pty Ltd, which was authorised to provide financial advice and deal in financial products, nor did he advise them he had received a ban from the Federal Court preventing him from providing financial services.
The charges against Grimm came as a result of ASIC’s Federal Court action to wind up 10 entities under his control. These were Ostrava Equities Pty Ltd, Ostrava Asset Management Pty Ltd, Ostrava Securities Pty Ltd, Ostrava Wealth Management Pty Ltd, Beta Pharmacology Pty Ltd, Prometheus Capital Pty Ltd, Thrive Lending Pty Ltd, Trade BTC Pty Ltd and Equity Capital Partners Hedge Fund Pty Ltd.
Grimm’s plea and sentencing hearing has been scheduled to be heard in the Victorian County Court on 14 April.
The matter will be prosecuted by the Commonwealth Director of Public Prosecutions. Grimm’s activities constitute breaches of section 1041 G(1) of the Corporations Act, which at the time the offences occurred carried a maximum penalty of a 10-year gaol sentence.
