28/11/2013 - 14:21

King to stand trial over $3.7 million fraud

28/11/2013 - 14:21

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Todd Michael King, a former Perth-based financial adviser has been ordered to stand trial for more than $3.7 million worth of fraud and stealing offences.

King to stand trial over $3.7 million fraud

Former Perth-based financial adviser Todd Michael King has been ordered to stand trial for more than $3.7 million worth of fraud and stealing offences.

Mr King was charged this September with one count of fraud and four counts of stealing.

Between May 2006 and September 2008, Mr King was an authorised representative of Australian Stockbroking and Advisory Services Limited and a director of Stripe Capital.

It is alleged that, in 2007, Mr King borrowed 85,000 Wesfarmers shares from a client for three months, as collateral for a margin loan account held by Mr King’s mother.

In early 2008, Mr King’s mother’s account had two margin calls made on it, which Mr King met by allegedly transferring more than $1.4 million in shares from the client’s account without the client’s knowledge or consent.

Again in early 2008, it is alleged Mr King borrowed $1.2 million from another client to enable a company controlled by Mr King to complete the purchase of shares and options through a margin loan account.

The company subsequently had margin calls made on its account and Mr King allegedly, without the client’s knowledge, transferred more than $1 million in shares from the client’s account to meet them.

In 2011, the Australian Securities & Investments Commission permanently banned Mr King from the financial services industry.

Mr King has pleaded not guilty to all charges, with the trial set for February 21 next year.

Conditional bail was granted to Mr King, which includes reporting to police twice a week and surrendering his passport.

The Commonwealth Director of Public Prosecutions is prosecuting the matter.

Mr King will face a maximum seven years’ jail for each of the stealing charges and a maximum 10 years for the fraud charge if convicted.

 

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