Australia Bans Financial Adviser for 10 Years Over 15 Million AUD Crypto Scam

In a significant move to combat crypto-related fraud, Australia’s financial regulator has imposed a substantial penalty on an individual involved in a fraudulent digital asset scheme. The Australian Securities and Investments Commission (ASIC) has banned a former financial adviser, Glenda Maree Rogan, from providing financial services for a decade. Rogan was found guilty of misleading her clients into investing nearly 15 million AUD (approximately $9.6 million) in a crypto scam.

Between March 2022 and June 2023, Rogan deceived her clients by presenting the investment as a “high-yield fixed-interest account.” However, the funds were actually transferred to her personal and company-controlled bank accounts, converted into cryptocurrency, and directed to wallets linked to a purported UK-based trading platform that had already been blacklisted by the commission. Rogan made false statements to clients about the investment’s nature, risk, and liquidity, and falsely claimed to have been operating under her official capacity with her employer during that time.

As a result of these findings, Rogan has been banned from engaging in any financial services business or controlling an entity that provides such services for the next ten years. This enforcement action is part of ASIC’s broader crackdown on suspicious activity within its local sector. Earlier in May, the regulatory commission filed civil proceedings against a former crypto executive over the collapse of the now-defunct ACX Exchange, which caused losses of over 58 million AUD for several investors.

Other regulators in the region are also stepping up enforcement. The Australian Transaction Reports and Analysis Centre (AUSTRAC) recently tightened rules guiding crypto ATM service providers. These measures are designed to protect local investors from scams and improve anti-money laundering controls compliance. The combined efforts of these regulatory bodies underscore the growing concern over cryptocurrency-related fraud and the need for stringent oversight to protect investors.