Following an ASIC investigation, Lawson Stuart Donald was found to have dishonestly used his position as an employee of Bell Potter with the intention of directly or indirectly gaining an advantage for himself, or someone else, by rebooking share trades, or transferring trades from one client account to another.

In April 2013 Mr Donald, a former first-grade captain at Sydney’s Randwick District Football Club and Australian Barbarians player, received a suspended jail term upon entering a good behaviour bond (refer: 13-091MR).

The Commonwealth Director of Public Prosecutions, in consultation with ASIC, appealed the sentence including on the basis that it was manifestly inadequate.

The court today sentenced Mr Donald to two years jail to be released after one year.

Commenting on the original suspended sentence, the court said:

‘… the sentence failed to reflect the gravity of the offence and failed in particular to serve as an effective deterrent to other similarly intelligent, competitive professionals in the financial markets…’
The court added:

‘It has also been repeatedly observed that the real bite of general deterrence takes hold only when a custodial sentence is imposed … notwithstanding judicial statements to the effect that a suspended sentence is a sentence of imprisonment, the community (including those in ‘white collar’ occupations) might be justifiably forgiven for thinking that an offender who is serving a bond in the community has escaped meaningful punishment.’
ASIC Commissioner Greg Tanzer said, ‘Our financial system relies on gatekeepers like advisers doing the right thing so investors can be confident when they participate in the market.

‘This sentence recognises the seriousness of Mr Donald’s conduct and will serve to deter others from engaging in similar behaviour.’

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‘Tombstoning’ involves insurance brokers submitting insurance applications in the names of dead or fictitious people.

Downing Centre Local Court heard Mr Pavan Vyas submitted 15 false insurance applications between June 2012 and March 2013 to earn $243,433 in commissions.

Along with the false applications, Mr Vyas falsified 21 other documents to hide his dishonest conduct. The documents included falsified emails from fictitious clients and variations to insurance contracts.

In July ASIC banned Mr Vyas from working in the finance industry for life (refer:13-163MR).

Mr Vyas faces a maximum penalty of 10 years jail and/or a fine of $450,000 for each offence.

Mr Vyas was released on conditional bail and the matter will return to the Downing Centre Local Court on 6 September 2013.

The Commonwealth Director of Public Prosecutions is prosecuting the matter.

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