Disgraced financial adviser jailed for stealing $1.8M from client super savings

A disgraced former financial adviser has been sentenced to six years in jail for misappropriating almost $2 million worth of client funds – the majority of whom had self-managed super funds (SMSFs).

Graeme Walter Miller, who was once the financial services director of the Australian company CFS Wealth Pty Ltd, was sentenced in the NSW District Court on July 31 after an investigation run by the national corporate regulator Australian Securities and Investments Commission (ASIC).

Miller was a former financial planner for a number of high profile Sydneysiders, many of whom entrusted him with their self-managed superannuation funds. From July 2013 to April 2017, he ran an investment scheme from the small NSW Northern Rivers town of Myocum where, instead of investing his clients’ money on their behalf, he used it to fund his business, lifestyle and pay out dividends to exisiting clients.

In April, Miller pleaded guilty to six counts of engaging in dishonest conduct in the course of carrying on a financial services business in breach of the Corporations Act. Additionally, he has been ordered to repay approximately $1.777 million in favour of the victims.

The charges related to ten clients who he encouraged to transfer between $50,000 and $950,000 on the pretence they were investing their money when in reality, Miller was misappropriating the $1.865 million worth of funds for his own purposes. Four of the six counts related to funds invested through SMSFs held by the clients.

Judge Woods sentenced Miller to six years and described the conduct as a “Ponzi scheme” involving a “significant breach of trust” and a “cruel and deceitful betrayal inevitably leading to financial disaster”.

Of the nearly $2 million worth of stolen funds, $987,000 was sent to bank accounts held by Miller or his family, $318,500 was used to pay dividends, interest or returned to clients, $135,000 was used to pay other personal and business expenses and $27,000 was withdrawn as cash or sent overseas.

ASIC deputy chair, Daniel Crennan QC said Miller had systematically breached the trust of his clients over a long period of time, resulting in significant losses.

“As a financial adviser Mr Miller ought to have protected the interests of his clients,” he said. “His sentencing should send a strong message that such conduct will lead to individuals involved being brought before the court to face criminal charges.”

In January 2020, Miller was banned from providing financial services for 25 years and was disqualified from managing a corporation for three years.