ASIC permanently bans 2 financial advisers and jails former credit broker

Sean John Sweeney of Lindfield, NSW, and Perth financial adviser Rahul Goel have been permanently banned from providing any financial services, while credit broker Trevor William King of Sydney, NSW, was sentenced in Parramatta Local Court on 10 February 2023 to a 14-month intensive corrections order.

Mr Sweeney was convicted of fraud offences on 4 November 2022 and has been banned from providing any financial services, performing any function involved in the carrying on of a financial services business, and controlling an entity that carries on a financial services business.

He was authorised to provide advice between 17 November 2014 to 30 July 2018. Mr Sweeney was the sole director of Sweeney Insurance Services, which was authorised from 17 November 2014 to 8 October 2018. Subsequently, he was the sole director of Swinsure, which was authorised from 1 July 2020 to 30 July 2020. Mr Sweeney was convicted of fraud on 4 November 2022 in the Local Court of NSW at Hornsby.

On 21 December 2022, Mr Sweeney filed an application at the Administrative Appeals Tribunal (AAT) seeking a review of ASIC’s decision. This decision is currently pending.

Meanwhile, ASIC has also permanently banned former financial adviser Rahul Goel from having any involvement in financial services and credit activities.  

In December 2022, Mr Goel was sentenced to three years’ imprisonment for fraud offences to be released after serving 18 months, upon entering a $5,000 recognisance to be of good behaviour for two years. He had previously pleaded guilty to dishonestly obtaining over $35,000 from his clients’ superannuation accounts.

An ASIC investigation identified that after obtaining First Nations consumers’ superannuation details, Mr Goel submitted falsified benefit access applications or hardship applications to the superannuation funds. After funds were successfully released, Mr Goel retained up to 100 per cent of the payout in fees before forwarding the balance to the consumers (22-355-MR).

Following his convictions, ASIC pursued banning orders to remove Mr Goel permanently from the financial advice and credit industries.

Mr Goel has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.  

Background 

Finally, credit broker Trevor William King was sentenced in Parramatta Local Court on 10 February 2023 to a 14-month intensive corrections order after making false documents to obtain a financial advantage, contrary to s253(b)(ii) of the Crimes Act 1900 (NSW).

Between 2 July 2013 and 12 May 2016, Mr King created 74 false documents in support of 29 loan applications, including 57 false payslips, nine false PAYG payment summaries and eight false real estate documents.

Mr King used these false documents to support loan applications for clients of the credit brokerage businesses he part-owned and operated, JT King Finance Pty Ltd and Australia Enterprises Pty Ltd. Mr King or others would then obtain loan commissions for the approved loans.

The commissions Mr King and others obtained from the approved loans ranged from $643.50 to $6,795.36 in upfront commissions and $99.67 to $2,470.69 in trail commissions, with the total amount of commissions being $81,057.35.

When handing down the sentence, the magistrate, Peter Thompson, remarked that Mr King was in a position of trust and that the quantum of financial benefit he received was not insignificant. Mr Thompson also noted the integrity of the home loan and credit industry, noting that those employed in the industry should be held to the highest level of probity.

Mr King pleaded guilty on 16 December 2022 (22-279MR) to six rolled-up charges. The offending is contrary to section 253(b)(ii) of the Crimes Act 1900 (NSW).

The Commonwealth Director of Public Prosecutions prosecuted the matter after a referral from ASIC.