A former financial adviser has been convicted of offences for providing inappropriate advice to five clients.
Kevin Whitting admitted to five charges and pleaded guilty in Victoria’s Frankston Magistrate’s Court for providing false and misleading statements. The former Victorian financial adviser was subsequently fined $5,000 and ordered to pay back more than $684,000 in total to the five affected clients, according to ASIC.
The money was invested in the managed investment scheme Blue Diamond Deposits Trust No. 1 (BDT) between 2008 and 2009 with the scheme, collapsing in 2010 with deficiencies reported in excess of $22 million.
Although Mr Whitting had no commercial involvement with BDT apart from receiving commissions as an authorised representative of a financial services licensee, he provided inappropriate advice to the retail client concerning investment in the BDT ASIC has said. Whitting was banned in 2011 for four years for failing to comply with financial services laws between May 2007 and February 2009 when he was employed by Shelbourne Financial Services, an authorised representative of Kedesco Pty Ltd. At the time of Whitting’s ban, Kedesco had their license suspended for three months and has now been deregistered. Shelbourne Financial Services was also deregistered earlier this year.
According to the Director of Public Prosecutions, King faces a maximum seven years jail for each of the stealing charges and a maximum 10 years jail for the fraud charge.