Australia Banes Financial Adviser Over Crypto Investment Scam Allegations
Australia’s corporate regulator has banned financial adviser Glenda Maree Rogan from offering services for ten years, alleging she defrauded clients by channeling funds into a cryptocurrency platform later classified as a scam.
ASIC Ban and Allegations
The Australian Securities and Investments Commission (ASIC) announced on Thursday that Rogan will face a 10-year ban effective June 6, 2024. ASIC alleges Rogan “knowingly or recklessly” directed clients, family, and friends to a “high-yield fixed-interest account” masking investments in the crypto platform Financial Centre.
Between March 2022 and June 2023, ASIC claims Rogan diverted approximately AUD 14.8 million ($9.6 million)—”invested by clients, family and friends”—to personal and company accounts before converting most into cryptocurrency and depositing it with Financial Centre.
ASIC has placed Financial Centre on a “Do Not Deal” list, categorizing it as an unlicensed entity “that should not be trusted.”
Rogan’s Credibility Questioned
ASIC asserts Rogan told clients she was offering secure, high-yield fixed-interest investments. Instead, the watchdog alleges she “misled clients about the nature, risks, and liquidity of the investment to induce them to invest.” Specifically, Rogan allegedly concealed the shift to cryptocurrencies.
According to ASIC, Rogan had reason to suspect Financial Centre’s legitimacy since October 2022 and continued the scheme despite these concerns.
Between May 2014 and February 2024, Rogan worked as an accountant, financial adviser, and director at Fincare Group companies located in Sutherland (Sydney) and Wollongong.
The ASIC investigation into Rogan remains ongoing. The ban is based on ASIC’s finding that Rogan is “not a fit and proper person, is not competent to participate in the Australian financial services industry, and is likely to contravene financial services law.” She lacks a valid Australian Financial Services License since February 8, 2024.
Australia Crackdown on Crypto Scams
ASIC’s action aligns with broader Australian efforts to clamp down on cryptocurrency-related fraud. Following the significant ban announced this week, AUSTRAC (Australia’s financial intelligence agency) implemented stricter rules for crypto ATM operators through the Corporations (Credit Intermediation) Amendment (Crypto-ATMs) Regulations 2024.
The Feb. 29 announcement noted that AUSTRAC is reviewing dormant cryptocurrency exchange registrations due to concerns they could facilitate scams. Separately, AUSTRAC previously took enforcement action against several cryptocurrency and remittance service providers for compliance issues.
