The Australian Securities and Investments Commission (Asic) has charged a financial adviser with four counts of dishonest conduct.
The regulator claims that, between April and July 2019, Rahul Goel made applications for hardship and other superannuation funds on behalf of his customers through his company AR Wealth and Finance.
The customers were “potentially vulnerable”, Asic said.
False representation
According to court documents, Goel is accused of submitting numerous applications to AustralianSuper for the early release of members’ fund on grounds of hardship.
In July 2019, the superannuation fund gave Asic a report that said the released funds were being paid into accounts belonging to Goel or associated individuals, and that significant fees allegedly charged to the members were being retained in those accounts after the balance was paid out.
The report further raised concerns that Goel or an associate misrepresented themselves to AustralianSuper as being the member in question.
The firm has identified up to 67 members who had been impacted by the alleged conduct.
The report further states, however, that there is no accusation against Goel that he misappropriated the funds, other than by way of the deduction and retention of what purport to be fees.
As part of its investigation, Asic spoke with four people living in Western Australia, all of whom were Aboriginal.
According to two of the interviews, they sought Goel’s assistance to get access to their superannuation funds.
But on both occasions, telephone calls were made to AustralianSuper by either Goel or another individual without authorisation.
In one case, a hardship application form was submitted which the scheme member did not complete and did not authorise anyone else to prepare.
Asic said it has identified a total of 34 payments made by AustralianSuper into accounts held by Goel or associaties.
Travel ban
The case will be heard before the magistrates’ court in Perth on 4 December 2020.
In the meantime, Goel has been placed on conditional bail, which means he is not allowed to leave Australia, must surrender his passports and is restricted from applying for any other international travel document, Asic said.
Additionally, Goel’s assets along with those of his firm have been frozen by the federal court in Perth.
If convicted, each offence carries a maximum penalty of 15 years’ imprisonment.
