Former Sydney adviser sentenced to three years

Former financial adviser David Mario Valvo, who doubled as a comedian, was sentenced to three years imprisonment.

Valvo's sentence was handed down in Downing Centre District Court in February, but was suspended upon several conditions including that he would comply with the conditions of a good behaviour bond for five year period, pay a pecuniary penalty of $20,000 and make reparation to Oasis Fund Management.

Between July 2019 and January 2020, Valvo dishonestly obtained $110,000 from his clients' superannuation accounts.

An ASIC investigation identified that Valvo submitted ad hoc adviser fee forms for 12 clients which purported to authorise withdrawals from their Wealthtrac superannuation accounts.

ASIC said Valvo had created fictitious client file notes allegedly detailing conversations which purported to record some of his clients' consent to his withdrawal of the ad hoc fees.

However, ASIC found Valvo's clients had no knowledge of the ad hoc fees, did not sign the forms and did not consent to the withdrawal of the fees from their accounts.

Valvo also charged the majority of these clients ongoing monthly fees at the time of the unauthorised withdrawals, ASIC said.

Following ASIC's investigation, Valvo has had his assets frozen and been barred from leaving the country in 2023; he was subsequently charged in the following year.

In sentencing the judge remarked that Valvo was "clearly in a position of trust and he broke the trust of the 12 victims for whom he was supposed to be providing financial advice and assistance".

Valvo's guilty plea was taken into account by the Judge when handing down sentence.

ASIC deputy chair Sarah Court said Valvo betrayed his clients' trust.

"Instead of showing the honesty and integrity required of someone who works in the financial services sector, Mr Valvo's actions betrayed the trust of his clients and caused them financial harm," Court said.

"This sentence demonstrates the seriousness of the misconduct. ASIC will continue to take action to protect the superannuation assets of consumers."