A former Perth-based financial adviser has been ordered to stand trial for more than $3.7 million in fraud and stealing offences.
After appearing in Perth’s Magistrates Court on 27 November, Todd Michael King was committed for trial in the Perth District Court.
The trial listing date will be set on 21 February 2014.
King, 41, was charged in September with one count of fraud and four counts of stealing.
He has pleaded not guilty to all charges.
The charges relate to King entering into contracts with two clients to borrow shares and funds as collateral on margin loan accounts.
It is alleged in late 2007 King borrowed from a client 85,000 Wesfarmers shares for three months as collateral for a margin loan account held by King’s mother. In early 2008 King’s mother’s account had two margin calls made on it, which King met by allegedly transferring over $1.4 million in shares from the client’s account without his knowledge or consent.
In early 2008 it is alleged King borrowed $1.2 million from another client to enable a company controlled by King 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.
King was granted conditional bail which includes reporting to police twice a week and surrendering his passport.
The Commonwealth Director of Public Prosecutions is prosecuting the matter.
King faces a maximum 7 years jail for each of the stealing charges and a maximum 10 years jail for the fraud charge.
In May 2011 ASIC permanently banned King from financial services.
Another former financial adviser has been convicted for providing inappropriate advice to five clients and ordered to pay back the more than $684,000 they collectively invested.
Kevin Maxwell George Whitting pleaded guilty to five charges of providing inappropriate advice and admitted to a further five charges of providing false and misleading statements to three of the five investors.
The money was invested in the Blue Diamond Deposits Trust No. 1 (BDT) between September 2008 and January 2009. BDT, a managed investment scheme, collapsed in 2010.
Appearing in Victoria’s Frankston Magistrates Court last week, Whitting, 72, was convicted of all 10 offences and ordered to pay back the money. He was also fined $5000.
The Commonwealth Director of Public Prosecutions prosecuted the matter.
In May 2011 ASIC banned Whitting from providing financial services for four years.