A Queensland financial adviser and SMSF auditor has been charged with dishonesty offences linked to the misappropriation of nearly $5 million of client funds as part of an investigation carried out by the Australian Securities and Investments Commission (ASIC).
The corporate regulator stated Sunny Mahendra Prakash, who is also a certified practising accountant and registered tax practitioner, and director of Principal Financial Services Pty Ltd, Self-Managed Super Pty Ltd, Provest Enterprises and Super Funds Australia Pty Ltd in trust for Principal Superannuation Fund, appeared in the Brisbane Magistrates Court on 6 March charged with multiple dishonesty offences.
ASIC added that between January 2016 and June 2024, Prakash allegedly engaged in the provision of unlicensed financial services related to securities, executed unauthorised share trades on client accounts, falsified a fixed-term deposit certificate and misappropriated funds from both personal and SMSF bank accounts belonging to his clients for his benefit or the benefit of third parties.
“As a result of his conduct, it is alleged that Mr Prakash misappropriated funds of $4,912,435.80 and caused trading losses of approximately $1,277,776.94,” it said.
“Mr Prakash is charged with two counts of dealing in securities without a licence to do so. The maximum penalty is between two and five years’ imprisonment.
“He is also charged with two breaches of sections 1041G and 1311 of the Corporations Act, which each carry a maximum penalty of 15 years’ imprisonment.
“Mr Prakash is also charged with seven counts of dishonestly applying property of another to himself or another, in circumstances where the value of the property has a value of at least $100,000 (aggravated fraud). The maximum penalty for each offence is 20 years’ imprisonment.”
At the time of the alleged offences, he was authorised by Principal Financial Services Pty Ltd to provide financial product advice.
ASIC initially commenced court proceedings against Prakash in May 2024, but prior to that in March 2024 the Federal Court made orders preserving the assets of Prakash and his related companies and restraining him from leaving Australia.
This matter, which is being prosecuted by the Commonwealth Office of the Director of Public Prosecutions, has been adjourned for further mention on 15 May. ASIC has stated any clients of Prakash concerned about the advice they received or their investments should contact the regulator.
