SMSF advisor sentenced to 18 months in prison

by AB22 Feb 2013

Craig Gerard Dangar, a former self-managed superannuation advisor, has been sentenced in the NSW District Court, Downing Centre to concurrent suspended sentences of 18 months imprisonment after pleading guilty to two charges brought by ASIC of obtaining financial advantage by deception.

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.

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 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.

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

ASIC also handed out its highest-ever fine yesterday: $500,000, to David Hobbs of Nelson, New Zealand.

Hobbs, described as the 'mastermind' behind ehind more than a dozen unregistered offshore managed investment funds, including a $30 million Ponzi scheme, targeted Australian investors and SMSF's.