Bridges Financial Services (Bridges) has sought legal action against one of its former advisers after evidence found he had misappropriated $160,000 of clients' funds.
Bridges and its parent company Australian Wealth Management has taken action against Alan Leslie Brown in the Federal Court.
Brown was employed as an authorised representative of Bridges from about 7 June 2007 until 28 May this year.
According to documents filed to court, Brown is alleged to have obtained $57,500 from one client and $90,000 from another client.
On 11 June this year the court made a freezing order against Brown. A further freezing order was made against him less than a week later on 17 June.
"Later, when the client whose $90,000 had been used, died, Mr Brown used the money of another client to pay out the estate," court documents said.
"Mr Brown caused both amounts to be paid to the trust account of B Hayward & Co, the solicitors who were acting for Mrs Brown on the purchase and mortgage. It appears that of the $147,500, a sum of $23,676.94 was not needed and was paid to the Credit Union on account of Mr Brown."
Brown had used the sum of $147,500 towards the purchase of a property in which he placed in his wife's name Donna Joyce Brown, according to court documents.
The Court has since ordered a freezing order against Brown's wife.
Brown admitted to having used the $160,000 of clients' funds inappropriately in an interview on 6 May this year, documents said.
The case is due back in court later this month.
