ASIC Bans Financial Advisor Who Used Clients' Cash To Repay "Wolf Of Wall Street"

Josh O'Neill

1 November 2016

The has permanently banned a former financial advisor from providing financial services after discovering he used more than A$1.8 million ($1.36 million) of clients’ funds to settle personal debts to Jordan Belfort - aka the infamous “Wolf of Wall Street”.

Following an investigation, it emerged that Ashley Howard also used illicit funds to purchase a house and to pay for his partner’s cosmetic surgery on top of repayments made to Belfort, whose notorious character was portrayed by Leonardo DiCaprio in Martin Scorsese’s 2013 blockbuster film.

Additionally, the financial regulator found that Howard provided false information and documents to his clients and third parties.

ASIC also discovered that Howard failed to assist his trustee in bankruptcy by not lodging a statement of affairs, as well as failing to comply with official notices ordering him to produce documents and attend an examination.

Howard’s “dishonest” actions led ASIC to believe that he was “not of good fame and character”.

“Mr Howard’s conduct was particularly bad in that, on occasions, he preyed on elderly and vulnerable people,” said John Price, ASIC commissioner.

The investigation into Howard’s conduct began in 2014 when ASIC began examining circumstances surrounding the misappropriation of funds from the initial public offering for Elsmore Resources, a company which Howard directed at the time it listed on the Australian stock exchange.

The regulator’s latest conviction follows a string of bans throughout recent months as it continues to crack down on crooked financial advisors.

Earlier this month, ASIC permanently banned a financial advisor for lying about his qualifications.