A former financial adviser who was recently found guilty of multiple counts of fraud has been sentenced to more than a decade of imprisonment, with the Australian Securities and Investments Commission (ASIC) releasing more details of his actions in regards to SMSF clients.
Ben Jayaweera, a former financial adviser and director of Growth Plus Financial Group, which is in liquidation, was sentenced to 12 years’ jail in Brisbane District Court yesterday after having been found guilty of 28 counts of fraud totalling almost $6 million.
In sentencing Jayaweera, Judge Moynihan labelled his conduct “brazen, gross and callous” and said “his actions were not only criminal but evil, demonstrating no remorse”, according to an ASIC statement.
In announcing the sentencing, the corporate watchdog also released more information regarding Jayaweera’s actions, having previously stated he had advised clients, including those with SMSFs, to transfer funds into an unregistered scheme, the Australian Diversified Sector Income Fund (ADSIF).
ADSIF was presented as a diversified fund, but only invested in an abalone farm in South Australia controlled by entities under Jayaweera’s direction.
ASIC had also stated he withheld information concerning the true nature of the fund and, in some cases, removed clients’ funds from their SMSFs without their knowledge or consent.
However, following his sentencing, the regulator added: “He encouraged clients to establish SMSFs, which involved transferring the clients’ superannuation funds into a newly set up bank account with the Adelaide Bank.
“Mr Jayaweera then transferred money from those accounts to one of his corporate entity accounts without authority.”
ASIC deputy chair Sarah Court said: “Jayaweera’s actions betrayed the trust of his clients with some clients at or near retirement age and caused them significant financial harm. This sentence demonstrates that such behaviour will not be tolerated.”
Jayaweera will be eligible for parole after six years, with 977 days of pre-sentence custody declared as time already served.
