ASIC bans adviser for $3.6m fraud

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ASIC has obtained court orders permanently banning Melinda Scott from providing any financial services, after she defrauded clients of more than $3.6 million over eight years.

She has also been disqualified from managing corporations for 25 years.

Scott, of Lilli Pilli, was the sole director of Roach Graham Scott Pty Ltd (RGS), which has now been permanently restrained from carrying on a financial services business or providing a financial service by the Supreme Court of New South Wales.

According to the court’s findings, between 9 February 2004 and 27 April 2012 Scott:

  • repeatedly and persistently engaged in dishonest conduct when providing financial services;
  • obtained $3,632,759.46 from 56 separate clients;
  • generally used this money for her own personal benefit knowing that this was not in accordance with the clients’ instructions;
  • falsely told some clients their money had been invested in accordance with their instructions and was making returns.

Scott’s misdemeaners took place while she was an authorised representative of ANZ-owned Millennium 3 Financial Services Pty Ltd. Scott’s authorisation was revoked, and ASIC obtained court orders preventing her from carrying on a financial services business, In May 2012.

ASIC’s investigation into Scott’s conduct is ongoing.

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