SMSF adviser guilty of deceptive investment advice to clients

A former self-managed superannuation advisor has received concurrent suspended sentences of 18 months after advising his clients to buy shares he held in a commercial lending business.

Craig Gerard Dangar was yesterday sentenced in the NSW District Court, Downing Centre after pleading guilty to two charges brought by ASIC of obtaining financial advantage by deception.

Dangar pleaded guilty to obtaining a total financial advantage of $250,000 by recommending that two clients purchase a portion of his shares in Morris Finance Ltd, a Geelong-based commercial lender, and misrepresenting the true owner of the shares. 

He also indicated to one of the clients that the shares were likely to increase in value.

Charges were brought by ASIC following an investigation into Dangar’s conduct between January 2004 and September 2007 while he was employed to provide superannuation advice to trustees of self-managed superannuation funds, and compliance advice to accounting firms.

ASIC commissioner Peter Kell said ASIC is focused on promoting the integrity of the self-managed super industry so that ultimately, consumers feel confident when dealing in this area.

"This case is a reminder to industry participants in the self-managed super space that dishonest conduct will not be tolerated and can lead to criminal conviction," Mr Kell said.

Mr Dangar will be sentenced separately on a related charge before the Downing Centre Local Court on 11 April 2013.

The Commonwealth Director of Public Prosecutions is prosecuting this matter.