Australia Crypto Scam: Financial Adviser Hit with Devastating 10-Year Ban for $9.6M Fraud

The world of cryptocurrency can offer exciting opportunities, but it also attracts bad actors. A recent development highlights the risks, particularly when trusted professionals betray that trust. Australian authorities have taken significant action following a major Australia crypto scam.

What Led to the Financial Adviser Ban?

Australia’s financial watchdog, the Australian Securities and Investment Commission (ASIC), has imposed a substantial financial adviser ban on Glenda Maree Rogan. The ban prevents her from providing financial services for a decade, effective from June 6.

ASIC alleges that Ms. Rogan, who worked as an accountant, financial adviser, and director at Fincare companies between May 2014 and February 2024, engaged in deceptive conduct. She is accused of misappropriating approximately 14.8 million Australian dollars (around $9.6 million USD) from clients, family, and friends.

How Did the Alleged Scam Work?

According to ASIC’s claims:

• Ms. Rogan allegedly told investors their funds were going into a high-yield fixed-interest account.
• Instead, between March 2022 and June 2023, she reportedly transferred the money to personal and company accounts.
• A significant portion of these funds was then allegedly converted to cryptocurrency.
• The crypto was subsequently sent to a platform called Financial Centre, which ASIC lists as an unlicensed entity and advises against trusting.

ASIC claims that Ms. Rogan likely had suspicions about the legitimacy of the Financial Centre platform from as early as October 2022 but continued the alleged scheme.

Understanding the ASIC Ban and Ongoing Probe

The ASIC ban for 10 years is a severe penalty. ASIC stated its belief that Ms. Rogan is not a fit or proper person, lacks competence for the Australian financial services industry, and is likely to break financial services laws.

It’s important to note that this ban is distinct from potential criminal proceedings. ASIC has confirmed that its investigation into Ms. Rogan’s conduct is still ongoing. The ban means she cannot perform services related to or control a business involved in financial services. Ms. Rogan has the right to appeal ASIC’s decision to the Administrative Review Tribunal.

Since February 8, 2024, Ms. Rogan has not held the necessary license or authorization to provide financial services under an Australian Financial Services License.

Broader Context: Crypto Regulation Australia

This case occurs within a broader push for stronger crypto regulation Australia. The national financial intelligence agency, AUSTRAC, has also been active in tightening controls.

• Recently, AUSTRAC rolled out new operating rules and transaction limits specifically for crypto ATM operators to help combat scams.
• In April, AUSTRAC warned inactive registered crypto exchanges, urging them to withdraw registrations or face cancellation due to concerns they could be exploited for scams.
• Earlier in February, AUSTRAC took action against 13 remittance service providers and crypto exchanges, with investigations into over 50 others ongoing for potential compliance issues.

These actions underscore the regulators’ focus on increasing oversight and protecting consumers in the evolving crypto landscape.

What This Means for Investors

The case involving Glenda Maree Rogan serves as a stark reminder of the need for vigilance. Even when dealing with seemingly trusted financial professionals, it is crucial to:

• Conduct thorough due diligence on any investment platform, especially those involving cryptocurrency.
• Verify the licensing and credentials of financial advisers through official registers like ASIC’s.
• Be wary of promises of unusually high, guaranteed returns, which are often a hallmark of scams.
• Understand where your money is actually being sent and the risks involved.

Summary

In summary, ASIC has banned financial adviser Glenda Maree Rogan for a decade following allegations she funneled $9.6 million of client funds into a questionable crypto platform, misleading them about the nature of their investments. This significant financial adviser ban is part of a wider effort to strengthen crypto regulation Australia and combat scams. The case highlights the importance of investor caution and verification when dealing with financial professionals and crypto investments, reinforcing why regulatory bodies like ASIC are actively pursuing those who exploit this space for fraudulent activities.