Mark Francis McCabe jailed over fraud offences after spending client money on his rent, expenses

A former JP Morgan executive has been handed a hefty jail term after tricking investors into handing him their money and then spending it himself.

A former JP Morgan executive has been handed a four year, three-month jail term after tricking investors into handing him their money and then using more than $940,000 of it on his personal expenses

Mark Francis McCabe, of Sydney’s Roseville, will serve a non-parole period of two years and six months for three fraud offences against eight victims, whose money was spent on rent, private school fees and credit card bills.

The offences occurred while he was sole director of two companies, Guevara Capital Access and Online Trading Capital.

Corporate regulator ASIC said McCabe made “dishonest and deceptive” promises to investors that his companies would give them access to foreign exchange trading accounts along with access to funds in these accounts.

But instead of providing genuine trading accounts, McCabe only provided “test” accounts which were not capable of placing real foreign exchange trades.

ASIC Deputy Chair, Sarah Court. Picture: Martin Ollman

Subsequently, investors who used the accounts thought they were trading but were not.

Instead of using investors’ funds on their behalf, McCabe used the money to pay for business and personal expenses, such as rental payments, private school fees and various credit card purchases. The total financial advantage obtained by Mr McCabe was $940,350.

Judge Pauline David said McCabe’s conduct was “highly deceptive” and noted the offending was a “sophisticated scheme that created the illusion of genuine trading”.

The Judge further found Mr McCabe had engaged in “a form of psychological bullying” in gaining the trust of victims, who he subjected to “manipulative and threatening behaviour”.

Judge David described the impact on victims as “significant” and “life changing”, adding it had caused them “financial devastation”.

ASIC deputy chair, Sarah Court said the sentence reflected the seriousness of the misconduct.

Originally published as Mark Francis McCabe jailed over fraud offences after spending client money on his rent, expenses