Australia Bans Financial Adviser for 10 Years Over Alleged $9.6 Million Crypto Scam
Australia’s financial regulator, the Australian Securities and Investment Commission (ASIC), has imposed a significant 10-year ban on Glenda Maree Rogan, a former financial adviser, over allegations of her involvement in a deceptive cryptocurrency investment scheme. Rogan is accused of misleading clients into investing millions of dollars into a scheme that ultimately directed funds toward a platform labeled as a possible scam.
Allegations of Misleading Investments
According to ASIC, Rogan misled clients and individuals from her social circle, convincing them to invest in what she claimed was a high-yield fixed-interest account. However, instead of directing their funds into legitimate investments, Rogan allegedly transferred a total of 14.8 million Australian dollars (approximately $9.6 million) into personal and business bank accounts, most of which were then converted to cryptocurrency and sent to the Financial Centre, an unlicensed entity flagged by ASIC as a fraudulent platform.
The regulator claims that Rogan had suspicions regarding the legitimacy of the Financial Centre as early as October 2022 but continued to solicit investments under false pretenses. Spanning from March 2022 to June 2023, these actions reflect a severe breach of trust and ethics, which ASIC claims had dire implications for her clients.
Career Background and ASIC’s Ongoing Investigation
Rogan has a background as an accountant and financial adviser and was associated with a group of companies under the name Fincare, which operated in the Sutherland and Wollongong regions, located south of Sydney. Her financial services license had already expired by February 8, 2024, signaling that she was unlicensed to offer financial services at the time of her alleged misconduct.
ASIC stated its decision to enact a 10-year ban, effective from June 6, stems from concerns that Rogan is “not a fit and proper person” to operate within Australia’s financial services sector. The agency emphasized that its investigation into Rogan’s activities is still ongoing, indicating that further actions may be forthcoming as the facts continue to unfold.
Regulatory Measures and Sector Implications
Rogan’s case reflects a broader crackdown on crypto-related scams within Australia, as the national financial intelligence authority has recently implemented new regulations aimed at combating such fraudulent activities. For instance, new operating rules and transaction limits for cryptocurrency ATM operators were rolled out on June 3 to curb increasing scams.
In addition, the Australian Transaction Reports and Analysis Centre (AUSTRAC) has urged inactive registered cryptocurrency exchanges to either withdraw their registrations or face cancellation to prevent them from potentially being utilized in future scams. Earlier this year, AUSTRAC took action against 13 remittance service providers and crypto exchanges, with ongoing investigations into over 50 others concerning compliance.
As the regulatory landscape continues to evolve in response to the growing concerns over cryptocurrency-related fraud, ASIC’s actions in this case serve as a potent reminder of the importance of transparency and integrity in financial advisement.
Next Steps for Rogan
Under the terms of her ban, Glenda Maree Rogan is prohibited from performing any financial service-related activities or controlling a business that engages in such services. Notably, she has the right to appeal ASIC’s decision to the Administrative Review Tribunal, leaving the possibility for further developments in her case open.
As both clients and regulators remain vigilant in the face of evolving financial technologies, this incident underscores the importance of thorough research and regulatory compliance in the cryptocurrency space.
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