Former CFS Private Wealth financial adviser sentenced to six years in prison for $1.8M Ponzi scheme

Steffy Bogdanova
August 4, 2020 3:20 pm

Former financial adviser and director of Australian-based company CFS Private Wealth Pty Ltd was sentenced to six years’ imprisonment for misappropriating $1.865 million of client funds.

In April, Miller pleaded guilty to the six charges against him. These related to ten clients who were encouraged by Miller to invest between $50,000 and $950,000. Miller then took the money for himself.

Miller was sentenced to six years imprisonment. The Downing Centre District Court Judge Woods described Miller’s conduct as a “Ponzi scheme” and a “cruel and deceitful betrayal inevitably leading to financial disaster”.

The court also issued reparation orders of $1.777 million in favour of the ten clients.

ASIC

ASIC Deputy Chair Daniel Crennan QC said:

As a financial adviser Mr Miller ought to have protected the interests of his clients. His sentencing should send a strong message that such conduct will lead to individuals involved being brought before the court to face criminal charges.

Miller was a financial adviser of CFS between 2013 and 2017. He advised his clients to invest their funds in CFS but instead he used the client’s money for his own benefit and business expenses.

The Federal Court banned Miller in January 2019 from providing financial services for 25 years and from managing corporations for three years.

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Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.
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