Mr Nakhl engaged in dishonest conduct and was found guilty in the District Court of New South Wales. The court set Mr Nakhl a non-parole period of 6 years.
View the ASIC media release (19-055MR) for more information
Mr Nakhl was convicted on eight charges (18-178MR), brought by ASIC, of engaging in dishonest conduct with investor funds. The conduct affected 12 investors while Mr Nakhl was a representative of Australian Financial Services Limited (in liquidation) and as sole director of SydFA Pty Ltd (deregistered).
The court found Mr Nakhl advised clients to set up self-managed superannuation funds and to invest their superannuation and other funds in products such as shares, managed funds and high interest rate bank accounts. Rather than investing the 12 investors’ funds in these products, Mr Nakhl used these funds 'as he pleased' and for his own purposes.
Mr Nakhl then lied to the investors, telling them that he had invested their funds in accordance with his advice and that their investments were performing well. Mr Nakhl also tried to cover up his wrongdoing by having these 12 investors sign documents that supposedly authorised Mr Nakhl to use the funds in the way he did.
These 12 investors allowed Mr Nakhl to invest approximately $6.7 million on their behalf. Mr Nakhl lost approximately $5.1 million of these invested funds.
Episode 65: Crypto-assets for first time investors
Episode 64: Markets enforcement outcomes
Episode 63: ASIC enforcement update July to December 2020
Episode 62: Corporate governance enforcement outcomes
Episode 61: Risky business: land banking property investment schemes
Episode 60: Holes in the safety net: A review of TPD insurance claims
Episode 58: Oversight of non-financial risk
Episode 57: Are car insurance investigations treating consumers fairly?
Episode 56: ASIC's case against former director Bradley Silver
Episode 55: ASIC enforcement outcomes, January to June 2019
Episode 54: The future of financial services
Episode 53: Creating Shared Value
Episode 52: The regulatory toolkit
Episode 51: ASIC's case against former financial adviser James Gibbs
Episode 50: Balancing consumer choice and protection
Episode 49: ASIC's case against hacker Steven Oakes
Episode 48: International standard setting for insurance supervisors
Episode 47: The power of a ponzi scheme
Episode 46: ASIC enforcement update July to December 2018
Episode 45: Product intervention powers and design and distribution obligations
Create your
podcast in
minutes
It is Free
City Manager Unfiltered
Potencial Americano
The Chris Plante Show
Red Eye Radio
Strict Scrutiny