Australian market regulators have banned financial advisors from providing financial services for 10 years, claiming they have apparently invested their clients’ money in a crypto platform listed as potential fraud.
The Australian Securities and Investment Commission (ASIC) said Thursday it had put an 10-year ban on Glenda Marie Logan allegedly transferred Australia’s $14.8 million ($9.6 million) as “clients, family and friends invested in cryptocurrency-based investment scams.”
The agency claimed between March 2022 and June 2023, Logan would receive client funds, move them to personal and company bank accounts before converting the majority into crypto and sending them to Crypto Platform Financial Center.
The ASIC listed the financial center as an unlicensed entity “should not trust” and claimed that Logan “has been “skeptical of the financial center since at least October 2022.”
ASIC claims that Rogan’s client was cheated
ASIC said between May 2014 and early February 2024, Rogan was an accountant, financial advisor and director of a group of companies called Fincare in Sutherland and Wollongong, two areas of Sydney.
ASIC told clients that Rogan was investing in a high-yield fixed-rate account, claiming that he “misunderstands his client about the nature, risk and liquidity of the investment in order to induce the investment.”
ASIC probe is in progress
The 10-year ban came into effect on June 6th, with Logan’s investigation “still ongoing.”
On the grounds of the ban, the agency said, “Mrs. Logan is not the right person and is not capable of participating in the Australian financial services industry, and there is reason to believe that she is likely to violate the Financial Services Act.”
According to ASIC, Rogan has not been permitted or permitted to provide financial services under its Australian financial services license since February 8, 2024.
Under the ban, Rogan is currently unable to perform services related to or manage businesses involved in financial services. She has the right to appeal to the Administrative Review Court for review of ASIC’s decision.
Logan and ASIC did not immediately respond to requests for comment.
Australia cracks down on the code
Australia’s national financial intelligence agency has also cracked down on crypto, with crypto ATM operators rolling out new operating rules and trading restrictions to combat fraud on June 3rd.
Related: Australian court ruling could lead to $640 million in Bitcoin tax refund
In April, the Australian Transaction Report and Analytics Centre told the inactive registered crypto exchange that it might withdraw or take a risk of a horror that dormant companies could use it for fraud.
Also, Austrac took action against 13 remittance service providers and crypto exchanges in February, with over 50 other people still being investigated for compliance issues.
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