ASIC files contempt orders against repeat offender

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ASIC has filed a contempt application in the Federal Court against former Wealth & Risk Management (WRM) director Joshua David Fuoco.

In February 2018, the Melbourne-based wealth manager was ordered by the Federal Court not to carry on or be involved in a financial services business for 10 years.

At the same time, the court ordered WRM and its related companies, Yes FP and Jeca Holdings, to pay $7.15 million for providing 'fast cash' to financially vulnerable clients, which was followed with inappropriate advice.

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Fuoco was also fined a penalty of $650,000 for his involvement.

ASIC now alleges that between March 2019 and April 2023, in contravention of these orders, Fuoco was involved in carrying on a financial services business via five companies.

These include State Advice, Ansa Finance, AFSL Group, About Advice, and Advice Now.

ASIC is now seeking orders against Fuoco for contempt of court.

If Fuoco is found liable, the court can impose penalties which may include a fine, asset sequestration or a term of imprisonment.

Just last year, Fuoco was convicted and fined for his involvement in two companies while still being banned.

The corporate regulator found that Fuoco was running Financial Circle from August 2017 to September 2018, despite being disqualified from managing corporations for two and a half years in 2016.

Because of the investigation, Financial Circle's AFSL and credit licenses were cancelled in November 2018, and the company was fined $9 million.

ASIC called the Financial Circle case a "sequel" to the WRM [injunction] proceedings of 2017.

The current matter has not yet been listed for its first appearance in the Federal Court.

This article first appeared on Financial Standard

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Chloe Walker is a journalist at Financial Standard. She has a Bachelor's degree in journalism from QUT.
Comments
Rose Wood
February 1, 2024 8.20am

$7.15 million, $650,000 & $9 million in fines. Can anyone advise where this money goes or how it is used?

It would be interesting to know the quality/value of the financial advise given and if the clients benefited or were disadvantaged by advise given