A former Sydney financial adviser who misappropriated almost $3-million from his clients’ superannuation accounts has been given a six-year jail term, with a non-parole period of four years.
In passing sentence, the judge noted that the adviser’s behaviour was “deeply stupid” but noted that “being stupid is no defence or mitigation”.
Ross Andrew Hopkins of Killara in NSW was sentenced in the District Court of New South Wales following an investigation by the Australian Securities and Investments Commission (ASIC).
Company director convicted of 15 dishonesty offences
The former financial adviser was convicted of 15 dishonesty offences under the Corporations Act, committed when he was the sole director of QWL Pty Ltd.
Between October 2016 and October 2019, Hopkins was a financial adviser entrusted by his clients to manage their self-managed superannuation accounts.
“Mr Hopkins had almost complete control of his clients’ superannuation which allowed him to transact on their accounts,” ASIC said in a statement. “Over a period of nearly three years, Mr Hopkins misappropriated approximately $2.9 million of his clients’ funds without their knowledge.”
According to ASIC, he used his clients’ funds for his own benefit – such as spending on holidays, rent, paying his own credit card debts and repaying personal loans.
Serious consequences if advisers aren’t open and honest
ASIC Commissioner Danielle Press said Hopkins lied to his clients, and the court’s decision demonstrated the seriousness of this conduct. Financial advisers were required to be open and honest with their clients and faced serious consequences if they were not.
“Financial advisers should always allow clients to have direct access to information about their own investments. If this is not occurring, clients should contact ASIC with their concerns,” the commissioner stated.
In delivering the sentence, Acting District Court Judge Woods QC found that Hopkins was a “trusted financial adviser, managing funds pretending it was business-like, lawful and profitable. Each of the victims trusted and relied on him for his expertise. Some considered him a friend”.
In a previous hearing prior to sentencing, the accused had pleaded guilty to all charges.
