A Melbourne-based couple has pleaded guilty to ASIC charges relating to self-managed superannuation fund (SMSF) fraud.
Following an investigation by ASIC, Shaun White has pleaded guilty in Melbourne's County Court to nine counts of theft, two counts of dishonest conduct in relation to a financial product, and one count of conducting a financial services business without a license.
His wife, Nicole White, pleaded guilty to one count of aiding and abetting dishonest conduct in relation to a financial product.
ASIC's investigation and subsequent charges relate to the couple's involvement in PFS Business Development Group, a company that specialised in the establishment of SMSFs during 2003 and 2004.
ASIC alleged White misled investors and acted dishonestly by encouraging them to roll their superannuation savings into SMSFs established by the company, which he had access to through a hidden power of attorney clause.
The clause, contained in one of the documents used to set up the fund, appeared to the investors to authorise the company to deduct its fee for setting up the superannuation fund from the fund's bank account and to make authorised investments.
This clause, however, gave White unlimited access to the fund's account.
ASIC alleged White then transferred over $425,000 from his investors' accounts to his own account for his own use.
A number of investors were approaching retirement age and lost almost all of their superannuation.
The couple will return to the Melbourne County Court for a plea hearing on 14 July 2009.
