Australia Bans Financial Adviser for 10 Years Over A$14.8 Million Crypto Scam

Australia’s financial markets regulator has taken decisive action against a former financial adviser, Glenda Maree Rogan, imposing a 10-year ban on her from offering financial services. The ban, effective from June 6, follows allegations that Rogan deceptively invested her clients’ funds into a cryptocurrency-based investment scam. Between March 2022 and June 2023, Rogan is accused of transferring approximately A$14.8 million (US$9.6 million) from clients, family, and friends to the Financial Centre, a crypto platform listed as a potential scam by the Australian Securities and Investment Commission (ASIC).

Rogan, who operated under the Fincare group of companies in Sutherland and Wollongong, allegedly misled her clients by presenting the investment as a high-yield fixed-interest account. In reality, the funds were converted into cryptocurrency and sent to the Financial Centre. ASIC has flagged the Financial Centre as an unlicensed entity that should not be trusted, suggesting that Rogan had suspicions about its legitimacy as early as October 2022. The funds were first transferred to Rogan’s personal and company bank accounts before being converted into crypto and sent to the Financial Centre.

ASIC’s investigation revealed that Rogan had been an accountant, financial adviser, and director at Fincare since May 2014. The regulator claimed that Rogan misled clients about the nature, risks, and liquidity of the investment to induce them to invest. Rogan’s actions have led ASIC to conclude that she is not a fit and proper person to participate in the Australian financial services industry and is likely to contravene financial services laws. Rogan has not been licensed or authorized to provide financial services under an Australian Financial Services License since February 8, 2024.

Under the ban, Rogan is prohibited from performing any services connected to or controlling a business that engages in financial services. She has the right to appeal the decision to the Administrative Review Tribunal. ASIC’s investigation into Rogan’s activities is ongoing, and her name has been recorded in ASIC’s banned and disqualified register. Rogan and ASIC did not immediately respond to requests for comment.

This ban is part of a broader crackdown on crypto-related misconduct in Australia. The national financial intelligence agency has implemented new operating rules and transaction limits for crypto ATM operators to combat scams. In April, the Australian Transaction Reports and Analysis Centre (AUSTRAC) warned inactive registered crypto exchanges to withdraw their registrations or risk having them canceled due to fears of potential scams. AUSTRAC also took action against 13 remittance service providers and crypto exchanges in February, with over 50 others still under investigation for possible compliance issues. The regulator aims to send a clear message that misleading investors and exploiting trust in emerging technologies will not be tolerated.