Former adviser jailed over $2m SMSF investment scheme

Former financial services director Ashley Arandez has been sentenced to five and a half years imprisonment after admitting to dishonest conduct, operating an unlicensed financial services business and dealing with proceeds of crime tied to $1.97 million in investor funds.

The County Court of Victoria sentenced the Hoppers Crossing-based former adviser on May 8, with Arandez to be eligible for parole after serving three years and six months.

The offences stemmed from conduct between 2017 and 2021, during which Arandez recommended clients invest money from their self-managed superannuation funds (SMSF) into investment products he controlled. Investors were promised fixed returns of up to 300% after three years.

However, ASIC said Arandez had not been licensed or authorised to provide financial services from June 2019 onwards, with many of the promised investments never materialising.

The corporate regulator alleged Arandez diverted some investor funds for personal use, including the purchase of property and a motorhome in his name.

ASIC deputy chair Sarah Court said the sentence reflected the seriousness of the misconduct and the damage caused to the investors.

"Arandez betrayed the trust of his clients, misappropriated investors' funds and used the money for his own benefit," said Court.

ASIC said the case formed part of its broader efforts to target unlicensed conduct and protect consumers from financial harm, particularly in areas involving retirement savings and SMSF's.

The matter was prosecuted by the Office of the Commonwealth Director of Public Prosecutions following an ASIC investigation and referral.

As a result of the convictions, Arandez is automatically disqualified from managing corporations for five years following his release from prison.

The case also highlights ongoing regulatory concerns around SMSF investors being targeted with high return investment schemes outside licensed financial advice channels, an area ASIC has repeatedly identified as a heightened enforcement priority.