Cutting and pasting client signatures onto separate documents has seen a finance broker banned for life for his fraudulent activities and breach of duties as a financial services provider.
Financial regulator ASIC permanently banned Victorian man Koresh Daniel Houghton from providing any financial services, and cancelled his Australian credit licence, after a covert investigation found him to be committing a number of offenses.
Among these were the creation of false documents, whereby he copied and pasted client signatures onto a letter nominating him as the client’s adviser, as well as submitting insurance application forms which contained incorrect information.
Mr Houghton was also found to fail in his obligations as a financial services provider by not adequately exploring a client’s needs before recommending products.
The investigation by ASIC covered multiple client files over a lengthy period between July 2013 and October 2016. In that time, Mr Houghton worked as a representative of Financial Wisdom, Commonwealth Financial Planning and Dover Financial Advisers.
ASIC’s initial verdict was handed down in September 2017, while the cancellation of Mr Houghton’s credit licence was announced this week.
“Consumers should be confident that their financial adviser is honest and acting in their best interests. ASIC will continue to take action and remove advisers who engage in serious misconduct and breach community trust,” ASIC’s deputy chairman Peter Kell said at the time.
The regulator noted that Mr Houghton still has the right to appeal this decision.
Adam Zuchetti is the editor of My Business, and has steered the publication’s editorial direction since early 2016.