Sydney SMSF super schemer sentenced to jail

Kent Nguyen was sentenced on Tuesday to three years’ jail for unlawfully creating, operating and benefiting from a fraudulent self-managed superannuation fund (SMSF) that did not comply with the relevant protocol, procedures and requirements of superannuation legislation.

Between 2007 and 2009, Nguyen used the fund, named Tot Form Super Fund, to arrange the unlawful early release of superannuation funds for a number of people in the community. Many of the people were in financial trouble and were approached by friends who told them ‘they knew someone’ who could help.

In each of the 25 cases, the individual’s super balance that was held within a retail superannuation fund was rolled over to Tot Form Super Fund, with the total amount of funds unlawfully withdrawn exceeding $700,000.

According to the Tax Office, Nguyen retained a significant portion of the amount, telling his clients that the money had been paid as tax.

ATO assistant commissioner Ian Read said the sentence demonstrated that promoters who encourage illegal early access to superannuation will be held accountable.

“Taking your super out from any super fund early without meeting a condition of release, or encouraging others to do so, is illegal,” Mr Read said.

“This case is also an important reminder for people to be aware of their super affairs, and their obligations. There are some very limited circumstances where you may be able to withdraw your super early, but generally you can only withdraw your super when you reach preservation age and stop working.”

He warned that illegally accessing super early could result in administrative penalties and disqualification from being a trustee.

You can find out more about how you can avoid being a victim of illegal early release of super at ato.gov.au/illegalsuperschemes