Former Brisbane adviser Thanh Tu was handed the sentence after pleading guilty in November last year to 33 counts of fraud and 21 counts of fraudulent falsification of records.
The plea followed an ASIC investigation that alleged that Tu dishonestly induced 18 investors to invest around $9m to invest in fictitious securities. Instead, ASIC said, Tu redirected the funds to a personal trading account he used for risky investments. ASIC said Tu ultimately lost a total of $8,120,073.53 of the original capital invested. A total of $959,000.00 was recovered.
"The actions of Mr Tu were deceitful and calculated and undermine confidence in the financial advice industry. His lengthy jail sentence should send a strong message that such conduct will not be tolerated by ASIC or the community," ASIC commissioner Greg Tanzer said.
A former adviser has been sentenced to nine-and-a-half years in prison.