Australian Former Financial Adviser Ben Jayaweera Sentenced to 12 Years in Prison on 28 Counts of Fraud

The Australian Securities and Investments Commission (ASIC) has announced that former Brisbane financial adviser and director of Growth Plus Financial Group Pty Ltd (in Liquidation) Ben Jayaweera was sentenced to 12 years imprisonment following a three-week retrial in the Brisbane District Court. 

On 23 August 2024, a jury found Mr Jayaweera guilty of 28 counts of fraud under section 408C(1)(e) Criminal Code Act 1899 (Qld). Over the course of 28 transactions, Mr Jayaweera caused losses totaling $5,958,870 to 12 former clients.

Mr Jayaweera withheld information from his clients concerning the true nature of the fund and, in some cases, removed clients’ funds from self-managed super funds (SMSFs) without their knowledge or consent.

Between August 2013 to November 2015, Mr Jayaweera dishonestly obtained money from his clients via two methods:

• he induced clients to invest in the Australian Diversified Sector Investment Fund (ADSIF) by misrepresenting the attributes/qualities of the fund to give the impression that it was a diversified investment fund holding assets in a range of asset classes. Those investment monies were then transferred to one of Mr Jayaweera’s corporate entity accounts, and
• he encouraged clients to establish SMSFs, which involved transferring the clients’ superannuation funds into a newly set up bank account with the Adelaide Bank. Mr Jayaweera then transferred money from those accounts to one of his corporate entity accounts without authority.

Mr Jayaweera made the following representations about ADSIF, both orally and in writing, to investors:

• ADSIF was a diversified fund which held underlying assets in aquaculture, agriculture, property and cash investments in Australia, and
• there was a maximum fund allocation assigned to each asset class.

Mr Jayaweera intentionally omitted to inform investors of the following critical information, knowing that it would be relevant to their decision as to whether to invest in ADSIF:

• ADSIF was not a diversified fund; its only asset was in the form of loans to Mr Jayaweera’s private corporate entities, which held the assets comprising an abalone farming project in South Australia
• he was involved and had a controlling interest in the abalone farming project through those private corporate entities as the sole director and shareholder
• since ADSIF did not hold any physical assets, there was no capacity for its investments to achieve capital growth.

ASIC Deputy Chair Sarah Court said: “ASIC is committed to pursuing criminals who commit serious harm against individuals and act dishonestly, as was the case here. Mr Jayaweera’s actions betrayed the trust of his clients with some clients at or near retirement age and caused them significant financial harm. This sentence demonstrates that such behaviour will not be tolerated.”