Ben Jayaweera was charged in a Brisbane court on 25 May following an investigation by the Australian Securities & Investments Commission (Asic).
Asic alleges that between September 2013 to October 2015, Jayaweera dishonestly caused a detriment to numerous clients while an authorised representative of Growth Plus Financial.
Jayaweera was the director of Growth Plus Financial, which held an Australian Financial Services license and operated an unregistered managed investments scheme known as the Australian Diversified Sector Income Fund (ADSIF).
Asic said Jayaweera represented that ADSIF was a diversified fund when in reality, he was diverting the funds of investors into a single project; an abalone farm in South Australia which was operated by entities under his control.
The charges against Jayaweera carry a maximum penalty of up to 12 years imprisonment.
The court granted Jayaweera conditional bail and the matter was adjourned until 13 July 2018.
