The Australian Securities and Investments Commission (ASIC) brought 14 charges against Paul Drakos, of the NSW central coast.
ASIC said Mr Drakos, 52, appeared in Sydney’s Downing Centre Local Court today on eight counts of obtaining a financial advantage by deception, two of fraudulent misappropriation and four of making and using false documents.
The charges relate to transactions worth more than $7 million.
An investigation found that between 1997 and 2001, Mr Drakos, an authorised representative of the NAB, recommended his NAB clients invest in Bahamas-based BSI Corp, ASIC said in a statement today.
BSI Corp was not an NAB-approved investment product and investors subsequently lost more than $4.7 million.
NAB had compensated most of Mr Drakos’ former clients for their losses, ASIC said.
The corporate regulator permanently banned Mr Drakos from acting as a representative of a dealer or investment adviser in January this year.
ASIC said Mr Drakos was not required to enter a plea and was released on bail to reappear on March 1 next year.
Associated Press
