Bell Potter adviser gets jail time

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Former Bell Potter Securities adviser Glen Russell Evans has been prosecuted by ASIC, less than one month after fellow adviser Lawson Stuart Donald was given a fully-suspended two-year six-month sentence.

Evans, who pleaded guilty to 10 counts of misappropriating funds, received five years jail with a non-parole period of three years and nine months. Five further counts were also considered in sentencing.

ASIC said that Evans' fraudulent conduct cost investors more than $1.6 million. According to the regulator, Evans entered into contracts with individuals and self-managed superannuation funds to invest in listed Australian equities and derivatives. ASIC’s investigation found that he:

 

  • failed to invest the money as agreed
  • provided false trading and performance reports
  • failed to repay the balance of the proceeds to the investors, and
  • in some instances used clients' money as collateral for his personal trading account without their authorisation

ASIC's concerns arose from Evans’ role as a director of Kismet Trading Pty Ltd (deregistered), during his employment at Bell Potter Securities where he worked until his resignation in October 2008.

ASIC Commissioner Greg Tanzer said, “This is the second prosecution in a month involving a financial adviser who has exploited client accounts in a deceptive fashion."

The regulator has confirmed that Evans was not an authorised representative of an AFSL. As an employee of Bell Potter Securities he was covered by their AFSL for his work on behalf of Bell Potter. However, as the relevant conduct occurred outside of Bell Potter in his capacity of an office holder of Kismet, he was acting without an AFSL.

  • GAB on 23/05/2013 4:33:18 PM

    Isn't the term financial adviser about to be enshrined and protected. Tanzer should be careful how he throws the name around in the future.

  • Stephen on 23/05/2013 3:21:57 PM

    I suppose ASIC has to win something every once in a while. Their track record in cases against large and powerful entities is appalling. But then again, ASIC is not the toothless tiger that the SEC is.

  • Bob Angel on 23/05/2013 2:25:51 PM

    Concur, why is he being called a financial adviser, does it more suit the agenda

  • CFP® on 23/05/2013 2:02:56 PM

    Glen Russell Evans is not a financial adviser...He is a stock broker

  • Innocent Observer on 23/05/2013 12:43:34 PM

    That's the spirit, ASIC!

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