ASIC alleged that the NSW financial adviser Graeme Walter Miller, director of CFS Private Wealth, also used investor funds for personal use and as repayment to other CFS Corporation investors.
ASIC said it is taking proceedings against CFS Private Wealth, Combined Financial Solutions and BDM Asia Pacific (the deregistered CFS Corporation) in addition to Mr Miller.
This decision was made after an investigation finding that, in addition to the alleged misuse of client funds and recommendations that clients set up SMSFs and use the funds to invest in CFS Corporation, Mr Miller did not keep proper records of his clients’ investments in CFS Corporation and continued to operate CFS Corporation’s bank account even after it was deregistered.
ASIC said there may not be sufficient funds to repay investors and is seeking orders to prevent Mr Miller from providing financial services and disqualify him from managing corporations, and prevent the related groups from dealing with investor funds or assets.
The regulator also wants a liquidator to be appointed to the companies and to have the companies wound up.
The investigation is ongoing, with this matter to be heard in the Brisbane Federal Court on 10 May.