Australian regulator ASIC obtains court orders Against DanFX Trade operator, Daniel Farook Ali. Mr. Ali and his companies were carrying out financial services activities without obtaining an Australian Financial Services (AFS) license.
27 July, AtoZ Markets = The regulator of financial markets in Australia, the Australian Securities and Investments Commission (ASIC) has announced that it obtained final orders from the Supreme Court of Queensland against the operator of DanFX Trade, Daniel Farook Ali. The individual has been charged in connection with the operation of number of unlicensed financial services firms.
ASIC Obtains Court Orders Against DanFX Trade Operator
It is known that Mr. Ali has been convicted and sentenced back in 2012 for fraud charges, after the raid that has been carried out by the Queensland Police in conjunction with the ASIC. He has been sentenced to two and a half years in prison.
Even though Mr. Ali has been banned from providing financial services, he established and operated Dan FX and two other related businesses that were operating in the financial services sector. It is understood that the companies were carrying out financial services activities without obtaining an Australian Financial Services (AFS) license.
The charges against Mr. Ali are also linked to the operation of DanFX Investment Holdings Pry Ltd and D&S Ali Properties Pty Ltd. Reportedly, the companies have raised around $13 million from more than 200 investors.
ASIC Reminds of Misconduct Costs
The Australian regulator also suspects that the parties have engaged in misleading conduct concerning the provision of unlicensed financial services. In addition, the ASIC believes that the companies were dealing with investor funds in an inappropriate manner. The assets of Mr. Ali and his firms have been seized after ASIC applied for investigating the DanFX Trade and other entities.
In an attempt to aid investors to identify the reliable companies for investment purposes, the ASIC has stated that it offers a list of registered investment companies and financial advisers. In addition, the regulator’s website also displays a list of disqualified and banner advisers and directors.
The watchdog has further stated that operating unregistered financial services company is punishable. Such misconduct can cost an entity or an individual as much as $36,000, two years’ jail, or both.
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