Former financial services director Ashley Arandez has been sentenced to five years and six months in prison for offences relating to misleading self-managed superannuation fund investors and operating without a financial services licence, the Australian Securities and Investments Commission (ASIC) announced.
Arandez, of Hoppers Crossing in Victoria, was sentenced on 8 May in the County Court of Victoria after pleading guilty to dishonest conduct, carrying on an unlicensed financial services business, and recklessly dealing with the proceeds of crime. He will be eligible for parole after serving three years and six months.
According to ASIC, between September 2017 and April 2021 Arandez raised roughly A$1.97 million from investors. He marketed investment products with promised returns of 8% to 12% per year or up to 300% on maturity after three years. Clients were encouraged to roll over money from their self-managed superannuation funds into investment products that he controlled.
Most of the promised payouts to investors did not eventuate. Instead, investor funds were used to purchase a house registered in Arandez’s name and a motorhome. ASIC stated that Arandez had lost his authorisation to provide financial services on 23 June 2019 but continued to operate for nearly two more years.
ASIC Deputy Chairwoman Sarah Court said, “Mr Arandez betrayed the trust of his clients, misappropriated investors' funds and used the money for his own benefit.” The conviction has triggered an automatic ban on Arandez managing corporations, which will apply for five years following his release from prison.
In 2022, ASIC froze Arandez’s assets and those of five related entities as part of its enforcement action. The criminal matter was prosecuted by the Office of the Commonwealth Director of Public Prosecutions following an ASIC investigation.
Regulatory and legal consequences
The case highlights regulatory action against unlicensed financial services activity and misuse of self-managed superannuation funds. Arandez’s conviction and subsequent imprisonment, together with the asset freezes and post-release management ban, represent a comprehensive enforcement outcome following ASIC’s investigation and the prosecution by the Office of the Commonwealth Director of Public Prosecutions.
