Glenn Russell Evans, a former Senior Client Advisor with Bell Potter Securities Limited, has been charged with 15 counts of fraudulent conduct involving more than AUD1.06 million following an Australian Securities and Investments Commission investigation.
Evans, 44, of Leichhardt, NSW, appeared before Sydney’s Downing Centre Local Court.
The conduct arises from Evan’s role as a director of Kismet Trading Pty Ltd (In Liquidation) during his employment as a Senior Client Advisor for the stockbroking company, Bell Potter Securities, where he worked until his resignation on 15 October 2008.
Evans is alleged to have used client funds for his own personal use instead of investing in Australian shares as agreed with his clients. Specifically, ASIC alleges Evans entered into contracts with individuals to invest funds with Kismet Trading in two types of investment funds. The first concerned Individually Managed Funds whereby investors would invest a minimum of AUD100,000 for an indefinite period. The second were Pooled Investment Funds with a minimum of a AUD10,000 investment for a two-year period. While each of the funds was seen by Bell Potter as a staff account owned and operated by Mr Evans, client funds were being used to facilitate the investments.
Further, ASIC alleges that Evans fraudulently omitted to account to investors the funds invested with Kismet Trading in the Individually Managed Funds and Pooled Investment Funds in the period 2004 to 2008. Evans dealt with the money in violation of the terms upon which it was received in that he:
failed to invest in listed Australian equities and derivatives, and
provided falsified trading and performance reports, and
failed to repay the balance of the proceeds to the investors.
ASIC also alleges that in some cases Evans authorised securities in the Individually Managed Funds as collateral for his personal trading account with Bell Potter Securities, thereby denying the investor their funds when Evans resigned with debts owed to Bell Potter Securities on his personal trading account.
The matter has been adjourned until 1 May 2012. Evans is required to appear on this date.
The Commonwealth Director of Public Prosecutions is prosecuting the matter.