media release (14-319MR)

Former financial adviser faces charges over $9 million fraud

Published

Following an ASIC investigation, a former financial adviser advised the Brisbane Magistrates Court today, through his lawyer, of his intention to plead guilty to 54 fraud charges.

Mr Thanh Quoc Tu, 38, is charged with 33 counts of fraud and 21 counts of fraudulent falsification of records.

The charges against Mr Tu carry a maximum penalty of up to 12 years jail.

It is alleged that, between September 2008 and September 2013, Mr Tu, while an employee of Patersons Securities Limited (Patersons) in Brisbane, misled 18 separate individual clients to invest a total of $9,179,073. His alleged conduct included providing false documents such as certificates of investment.

Mr Tu, of Melbourne, was released on conditional bail and the matter will be mentioned on a date to be advised in the Brisbane District Court.

The Commonwealth Director of Public Prosecutions (CDPP) is prosecuting the matter.

Background

Mr Tu’s bail conditions include surrendering his passport to the CDPP and that he not approach any point of international departure and not leave Australia.

In July 2014, ASIC permanently banned Mr Tu from providing financial services (refer: 14-171MR).

Mr Tu started work with Patersons in September 2008 as a private client adviser where he provided advice to, and invested funds for, predominately Vietnamese and elderly clients. Patersons terminated Mr Tu’s employment in September 2013.

Mr Tu was subsequently employed as executive investment adviser by Cognitive Wealth Pty Ltd (Cognitive) until the company became aware of ASIC’s investigation into Mr Tu’s conduct and ASIC’s action to restrict Mr Tu’s travel (refer: 13-354MR). Cognitive terminated Mr Tu’s employment in December 2013.

Patersons reported Mr Tu’s conduct to ASIC and has assisted ASIC during our investigation. As a result of Mr Tu’s conduct, Patersons implemented a remediation program for affected clients. Further information can be obtained by contacting Patersons on 1300 582 256.

Editor's note:

On 27 March 2015, Mr Tu was listed for sentence in the Brisbane District Court on 25 June.

Editor's note 2:

Sentencing for this matter has been set down for 6 November 2015.

Editor's note 3:

On 6 November 2015, Mr Tu pleaded guilty to all 54 fraud charges and has been remanded in custody. The matter has been adjourned for mention at 9:30am on 11 December 2015.

Editor's note 4:

On 11 December 2015, Mr Tu's sentencing was scheduled for 18 January 2016.

Media enquiries: Contact ASIC Media Unit