Daniel Farook Ali, former director of DanFX Trade, has been sentenced to seven years and three months imprisonment for fraud by the Brisbane District Court, ASIC reported.
The sentencing follows an ASIC investigation that revealed Mr. Ali misappropriated $771,303 of investor funds for personal use.
Ali pleaded guilty on May 23 to five counts of fraud. His fraudulent activities included using investor funds to purchase a BMW for an associate, real estate for himself and his wife, and to cover personal expenses. He also used the funds to pay returns to other investors.
Judge Carl Heaton, in his sentencing, noted the sophistication of Ali’s scheme, the exploitation of his victims’ trust, and the severe financial impact on those victims.
Ali will be eligible for parole from July 5, with the court considering his time already served since November 2021.
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Ali left Australia on May 8, 2018, amid ongoing civil proceedings and an ASIC investigation.
A warrant for his arrest was issued in 2019, and he was arrested in Poland in November 2021. Ali was extradited to Australia in August 2022 to face charges and has been in custody since then.
Ali’s history with fraud dates back to October 2013, when he was sentenced to two and a half years imprisonment, suspended after six months, for unrelated fraud charges.
In November 2017, ASIC permanently banned him from providing financial services. Additionally, ASIC obtained orders to appoint a receiver over his assets and wind up the scheme he operated.
In July 2018, the Supreme Court of Queensland permanently restrained Ali from managing companies, following findings that he managed an unregistered investment scheme without a licence and continued to manage companies despite being disqualified due to his prior conviction.
The Commonwealth Director of Public Prosecutions prosecuted the case following a referral from ASIC.
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