Former financial planner Graeme Miller cops six year jail sentence for Ponzi scheme

A former financial planner who ran a Ponzi scheme has been sentenced to six years in jail and ordered to repay almost $1.77m.

Former financial adviser Graeme Miller leaves a Sydney court. Picture: Adam Yip

A former financial planner at the centre of a Ponzi scheme has been handed a six-year jail sentence and ordered to repay almost $1.77m

Graeme Walter Miller, a former financial adviser and director of CFS Private Wealth was sentenced in the NSW District Court on July 31 after an Australian Securities and Investments Commission investigation.

Miller plead 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.

The charges against Miller relate to 10 clients he encouraged to transfer between $50,000 and $950,000 on the pretence they were investing the funds. However Miller misappropriated the money for his own purposes.

Judge Woods described Miller’s conduct as a Ponzi scheme and a “significant breach of trust” that led to financial disaster.

Miller’s investment scheme ran from July 2013 to April 2017 and was conducted from the small NSW Northern Rivers town of Myocum.

He invested none of the money he received, instead using it to fund his business and lifestyle and pay out dividends to existing clients.

Of the $1.865m Miller misappropriated, $987,000 was sent to bank accounts held by him or his family.

Only $318,500 was used to pay dividends, interest or returned to clients.

Miller used $135,000 to pay other personal and business expenses and withdrew $27,000 as cash or sent it overseas.

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

His latest prosecution followed a referral from ASIC.

ASIC Deputy Chair Daniel Crennan QC said Miller had been found to have systematically breached the trust of his clients over a long period, resulting in significant losses.

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