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Dr. Mark Sinclair
Dr. Mark Sinclair, Mentor Education

Former Perth adviser set to stand trial.

3 December 2013

Todd Michael King, a former Perth-based financial adviser has been ordered to stand trial for over $3.7 million in fraud and stealing offences.

King was an authorised representative of Australian Stockbroking and Advisory Services Limited (ASANDAS) between 9 May 2006 and 3 September 2008. According to a statement by ASIC King was charged in September 2013 with one count of fraud and four counts of stealing, and has been ordered to stand trial in the Perth Magistrates Court.

An ASIC spokesperson had said that King was also a director of Stripe Capital Pty Ltd, a corporate authorised representative of ASANDAS between 24 March 2006 and 31 July 2009 and the charges relate to “King entering into contracts with two clients to borrow shares and funds as collateral on margin loan accounts.”

ASIC has alleged that in 2007 King borrowed from a client 85,000 Wesfarmers shares for three months as collateral for a margin loan account held by his mother. In early 2008 King’s mother’s account had two margin calls made on it, which Mr King met by allegedly transferring over $1.4 million in shares from the client’s account without his knowledge or consent. In 2008 it is alleged King borrowed $1.2 million from another client to enable a company controlled by himself to complete the purchase of shares and options through a margin loan account. This company subsequently had margin calls made on its account and King allegedly, without the client’s knowledge, transferred over $1 million in shares from the client’s account to meet them.”

In May 2011 ASIC permanently banned King after he was found to have engaged in misleading and deceptive conduct between July 2007 and June 2008. King placed a scanned copy of a client’s signature on a document, which ASIC has stated, “made possible the unauthorised transfer of 40,000 client shares with a value of approximately $1.5 million.”

Following a committal mention in Perth’s Magistrates Court on the 27 November 2013, King has been ordered to stand trial in the Perth District Court on 21 February 2014. King has pleaded not guilty to all charges.

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