Thursday 9 November 2006 – LAWFUEL – Law Jobs, Law News Network – Mr Neville John Kakoschke, a former options advisor and stockbroker, was today sentenced in the Adelaide District Court to two-and-a-half years in prison. Mr Kakoschke, of Thorngate in South Australia, was sentenced on 27 forgery charges arising from an investigation by the Australian Securities and Investments Commission (ASIC).
A further 25 forgery charges were admitted and taken into account by the Court in imposing the sentence and setting a non-parole period of 12 months. ASIC alleged that between 13 September 2001 and 11 March 2003, Mr Kakoschke forged collateral lodgement forms allowing him to use his clients’ shares, without their consent, as security for trading on other clients’ accounts as well as for his personal options accounts. This placed clients’ shares worth about $1,283,980 at risk and without their knowledge.
As a consequence of Mr Kakoschke’s trading, some of his clients had no further collateral available to enable them to continue options trading. It was alleged that rather than tell these clients the true situation, Mr Kakoschke forged the third party collateral forms and used this collateral to continue trading on these accounts. ‘Clients of stockbrokers have a right to expect that their advisers will always act in their best interests. This action proves that those who do not carry out their responsibilities properly face serious consequences, including jail.
We are determined to pursue those who misuse their positions of trust’, ASIC’s Executive Director of Enforcement, Ms Jan Redfern said. This concludes ASIC’s actions against Mr Kakoschke who was permanently banned from involvement in the financial services industry by ASIC on 30 June 2004. The charges were prosecuted by the Commonwealth Director of Public Prosecutions. Background Mr Kakoschke was employed as a dealer’s representative of two stockbroking firms, Dicksons Limited between July 1997 and June 2002 and Bell Potter Securities Ltd between June 2002 and April 2003. ASIC’s investigation resulted in him being permanently banned and criminal charges for forgery being laid on 27 August 2004. Mr Kakoschke was committed for trial on 4 March 2005. On 7 August 2006, just prior to the listed commencement date for his trial, Mr Kakoschke pleaded guilty to 27 forgery charges and acknowledged a further 25 counts. For further information contact: Allen Turton Deputy Executive Director, Enforcement Telephone: 02 9911 2338 Mobile: 0411 549 236 Danielle Huck ASIC Media Unit Telephone: 03 9280 3407 Mobile: 0417 540 769
