Former director of Adelaide-based firm Power Financial Planning, Stephen McArdle, has been found guilty of aiding and abetting the company to provide financial services without an Australian financial services (AFS) licence.
McArdle was found guilty in the Magistrates' Court of South Australia on Friday, following an ASIC investigation into numerous individuals and entities who advised on Westpoint products and a subsequent trial in September 2010.
Power Financial Planning, one of a number of companies operating under the Power Loan banner, pleaded guilty in August to carrying on a financial services business without an AFS licence.
ASIC alleged that during 2005, Power arranged for 120 clients of an associated company, National Finance & Trading Group (NFTG), the proprietor of Power Loan, to invest over $10 million in financial products.
These products included Westpoint promissory notes and interests in Prime Retirement and Aged Care Property Trust, Kebbel Development Capital Fund No. 2 - Mount Gilead Trust and Kebbel Development Capital Fund No. 3 - The Riverside Pier Trust.
McArdle was a director of NFTG, Power, and a number of other associated companies. ASIC alleged that he entered into agreements to market the various financial products, assisted with the issue of product disclosure statements, and facilitated the transfer of application forms and investor funds.
The matter has been adjourned to 24 November 2010 for submissions on sentence. McArdle's bail conditions were varied to prevent him from leaving Australia.
