Australia’s financial watchdog, the Australian Securities and Investment Commission (ASIC), has taken decisive action against a financial adviser accused of deceiving clients. Glenda Maree Rogan has been banned from offering financial services for a decade due to allegations of her involvement in a cryptocurrency investment scam.
Between March 2022 and June 2023, Rogan purportedly transferred 14.8 million Australian dollars, equivalent to $9.6 million, from clients, family, and friends into a crypto platform identified by ASIC as a potential scam. This significant sum was initially moved to personal and company bank accounts before being converted into cryptocurrency and forwarded to the platform known as Financial Centre.
ASIC has flagged Financial Centre as an unlicensed entity that poses a risk to investors, stating that Rogan should have been suspicious about its legitimacy as early as October 2022. The regulator’s decision to impose a 10-year ban, effective from June 6, stems from concerns over Rogan’s competence and trustworthiness within the financial services industry.
Rogan’s clients were reportedly misled into believing they were investing in a high-yield fixed-interest account. ASIC alleges that Rogan misrepresented the nature, risks, and liquidity of the investment to encourage participation. This deceptive practice has led to severe repercussions for Rogan, who has been an accountant, financial adviser, and director at Fincare, a group of companies in Sutherland and Wollongong, since May 2014.
The investigation into Rogan’s activities is ongoing, as ASIC continues to scrutinize the details of the case. Rogan has not held a license or authorization to provide financial services under an Australian Financial Services License since February 8, 2024. Under the current ban, she is prohibited from engaging in any business related to financial services, though she retains the right to appeal ASIC’s decision before the Administrative Review Tribunal.
This incident is part of a broader crackdown by Australian authorities on the cryptocurrency sector. The national financial intelligence agency has introduced new regulations and transaction limits for crypto ATM operators to curb scams. In April, the Australian Transaction Reports and Analysis Centre (AUSTRAC) mandated inactive crypto exchanges to deregister or face cancellation, fearing their potential misuse for fraudulent activities.
Earlier, AUSTRAC took action against 13 remittance service providers and crypto exchanges, with over 50 others under investigation for compliance issues. These measures reflect Australia’s heightened vigilance in protecting investors from the risks associated with the rapidly evolving crypto market.
Note: This article is inspired by content from https://cointelegraph.com/news/australia-ten-year-ban-financial-adviser-crypto-scam. It has been rephrased for originality. Images are credited to the original source.