ASIC Bans Financial Adviser For 10 Years

Key Takeaways

• Glenda Maree Rogan has been banned for 10 years due to alleged deceptive investment practices involving a crypto platform.
• Rogan is accused of misleading clients about the nature and risks of their investments, channeling funds into a platform deemed untrustworthy.
• ASIC’s probe into Rogan’s activities continues, with potential for further legal actions.

Allegations & ASIC’s Findings

ASIC’s investigation revealed that between March 2022 and June 2023, Rogan transferred approximately AUD 14.8 million (USD 9.6 million) from her clients, including family and friends, into personal and company bank accounts.

Source: ASIC

She then converted a significant portion of these funds into cryptocurrency and sent them to the Financial Centre platform. ASIC has listed Financial Centre as an unlicensed entity that “should not be trusted.”

The regulator asserts that Rogan would have had suspicions about the legitimacy of Financial Centre from at least October 2022. Despite this, she allegedly misled clients into believing they were investing in a high-yield fixed-interest account, downplaying the risks and liquidity issues associated with the investment.

Rogan’s Professional Background

Between May 2014 and early February 2024, Rogan served as an accountant, financial adviser, and director at Fincare, a group of companies based in Sutherland and Wollongong, located south of Sydney.

Her role involved providing financial advice and managing client investments. ASIC’s investigation suggests that she exploited her position to facilitate the alleged fraudulent activities.

ASIC’s Enforcement Action

ASIC’s 10-year ban, effective from June 6th, 2024, prohibits Rogan from performing any services related to or controlling a business that engages in financial services.

The regulator stated it had reason to believe that Rogan is not a fit and proper person, lacks the competence to participate in the Australian financial services industry, and is likely to contravene financial services laws. Rogan has the right to appeal the decision to the Administrative Appeals Tribunal.

Ongoing Investigation

ASIC has indicated that its investigation into Rogan’s conduct is still ongoing. The regulator has previously taken action against individuals involved in similar fraudulent activities.

ASIC Has Officially Recorded Rogan’s Ban

Source: ASIC

For instance, in June 2023, the agency banned Queensland directors David Bugeja and Brian Washbournel from providing financial services for six years due to failures in meeting fit and proper person requirements.

Australia’s Crackdown On Crypto Scams

This action is part of a broader effort by Australian authorities to combat cryptocurrency-related scams. In June 2023, Australia’s national financial intelligence agency rolled out new operating rules and transaction limits for crypto ATM operators to help combat scams.

Additionally, the Australian Transaction Reports and Analysis Centre has been scrutinizing inactive registered crypto exchanges, warning them to withdraw their registrations or face cancellation over concerns they could be used for scams.

FAQ

What is Financial Centre, and why is it considered a scam?

Financial Centre is a cryptocurrency platform that ASIC has identified as unlicensed and untrustworthy. The platform is alleged to have been used for fraudulent activities, leading to its classification as a potential scam.

Can Glenda Maree Rogan appeal ASIC’s decision?

Yes, Rogan has the right to appeal ASIC’s 10-year ban to the Administrative Appeals Tribunal.

How can I protect myself from cryptocurrency scams?

To safeguard against scams, ensure that any crypto platform you use is licensed and regulated by appropriate authorities. Be wary of platforms offering high returns with little risk and always conduct thorough research before investing.