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 43: Climate risk disclosure
Episode 42: Registered liquidators and creditors
Episode 41: ASIC's review of the credit card market
Episode 40: SMSF advice
Episode 39: Indigenous Outreach trip to the APY Lands
Episode 38: Van Le
Episode 37: Scott Farrell on open banking
Episode 36: ASIC's Stretch RAP
Episode 35: Ian Yates
Episode 34: Mark McCrindle
Episode 33: Close the Gap
Episode 32: Add-on insurance
Episode 31: Conflicts of interest in financial advice
Episode 30: Risk management systems
Episode 29: ASIC's Annual Report
Episode 28 - ASIC's Data Strategy
Episode 27 - ASIC's approach to small business
Episode 26: Investors and initial public offerings
Episode 25: Crowd-sourced funding
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