Paul Drakos has appeared in Sydney Local Court to answer eight charges of obtaining a financial advantage by deception, two charges of fraudulent misappropriation and four charges of making and using false documents.
The 14 criminal charges brought by ASIC related to the period between 1997 and 2001 when Drakos was an authorised representative of the National Australia Bank (NAB).
ASICﾴs investigation into the activities of Drakos found he had recommended investment in BSI Corp. to his former NAB clients. BSI was a company based in the Bahamas and was not an investment product the bank had approved. The recommendations involved $7 million of transactions and resulted in $4.7 million of investorsﾴ funds being lost.
NAB has compensated most of Drakosﾴs former clients who lost money through the investment.
Drakos has been released on bail on condition he surrenders his passport to ASIC and undertakes not to attempt to leave the country.
ASIC had already permanently banned Drakos in January of this year form acting as a representative of a dealer or investment adviser.
The Financial Standard
