The Australian Securities and Investments Commission has permanently banned former Patersons Securities WA state manager Lewis Fellowes from providing financial services after finding he had transferred about $1.5 million of clients’ funds into his own accounts.
ASIC found Mr Fellowes had transferred more than $480,000 of client funds from their margin lending accounts into his personal account, as well as his wife’s, without the client’s knowledge.
He also transferred $1 million from a client’s bank account to his own.
The offences occurred between July 2008 and July 2010.
“This is an example of ASIC cracking down on inappropriate behaviour by financial advisers,” ASIC commissioner John Price said.
“ASIC will act to remove those financial advisers from the industry who engage in dishonest conduct.”
Mr Fellowes has since returned the funds to his former clients.
Mr Fellowes provided financial advice from 1995 to 2009 in Gladstone, Queensland, before moving to Perth in 2010 to become Patersons’ state manager of private clients.
He came under investigation by ASIC after Patersons submitted a voluntary report claiming Mr Fellowes had engaged in misconduct beginning at his former role at Tolhurst Group in Gladstone.
Mr Fellowes became branch manager of Patersons Gladstone after a merger with Tolhurst in 2009.
