Mr Ross Andrew Hopkins of Killara, NSW, has been sentenced in the District Court of New South Wales to a maximum period of six years鈥� imprisonment, with a non-parole period of four years.
Following an ob体育 investigation, Mr Hopkins, a former financial adviser, was convicted of 15 dishonesty offences under the Corporations Act, committed when he was the sole director of QWL Pty Ltd (QWL).
Between 14 October 2016 and 8 October 2019, Mr Hopkins was a financial adviser entrusted by his clients to manage their self-managed superannuation accounts. Mr Hopkins had almost complete control of his clients鈥� superannuation which allowed him to transact on their accounts. Over a period of nearly three years, Mr Hopkins misappropriated approximately $2.9 million of his clients鈥� funds without their knowledge.
Mr Hopkins used his clients鈥� funds for his own benefit, such as holidays, rent, paying his own credit card debts and repaying personal loans.
ob体育 Commissioner Danielle Press said, 鈥楳r Hopkins lied to his clients, and the Court鈥檚 decision demonstrates the seriousness of this conduct. Financial advisers must be open and honest with their clients and if they aren鈥檛, they face serious consequences.鈥�
鈥楩inancial advisers should always allow clients to have direct access to information about their own investments. If this is not occurring, clients should contact ob体育 with their concerns.鈥�
In delivering the sentence, Acting District Court Judge Woods QC found Mr Hopkins was a 鈥榯rusted financial advisor, managing funds pretending it was business-like, lawful and profitable. Each of the victims trusted and relied on him for his expertise. Some considered him a friend鈥�.
His Honour also remarked that Mr Hopkins鈥� behaviour was 鈥榙eeply stupid鈥� but noted that 鈥榖eing stupid is no defence or mitigation鈥�. It was also observed that Hopkins鈥� conduct 鈥榠nvolved positive steps to avoid detection and numerous misrepresentations and concealments鈥�.
Reparation orders were sought with respect to the losses suffered and judgment on this aspect was reserved until 7 July 2021.
Mr Hopkins is also automatically disqualified from managing a corporation for five years.
Mr Hopkins had previously pleaded guilty to all charges (20-287MR).
The matter was prosecuted by the Commonwealth Director of Public Prosecutions after an investigation and referral of a prosecution brief from ob体育.
Background
QWL, which has held an Australian Financial Services Licence since 1 January 2004, provided QWL clients with financial advice including dealing in securities and advising on self-managed superannuation funds.
ob体育鈥檚 investigation into Mr Hopkins and QWL commenced in 2019 in response to allegations that QWL had failed to assist the Australian Financial Complaints Authority in resolving client complaints.
On 4 November 2019, ob体育 obtained orders and undertakings restraining Mr Hopkins and QWL from dissipating assets or providing financial services to clients (19-300MR).
On 18 November 2019, ob体育 obtained an extension of those orders until 25 May 2020, with a further extension obtained until 23 November 2020.
On 19 March 2021 (prior to the matter returning to court on 22 March 2021), ob体育, with Mr Hopkins鈥� and QWL鈥檚 consent, obtained an additional extension of the financial services restraint orders against Mr Hopkins and QWL until 27 September 2021, with a Directions Hearing listed for 20 September 2021 at the Supreme Court of New South Wales.
Editor's note:
At the directions hearing on 20 September 2021, ob体育 obtained an order dismissing the financial services restraint orders against Mr Hopkins and QWL. ob体育 has permanently banned Mr Hopkins from providing financial services or controlling an entity carrying on a financial services business (21-252MR).