Former Global Merces FM director convicted of criminal charges
Former managing director of Global Merces Funds Management, currently in liquidation, Holly Grofski, has been convicted of criminal charges which included the falsification of documents and providing the false information to an auditor.
Following her guilty pleas, Grofski was sentenced in the Brisbane District Court on each count to six months imprisonment.
The Australian Securities and Investments Commission (ASIC) said she would be released immediately upon “entering a recognisance in the amount of $1,000, on the condition that she be of good behaviour for 18 months”.
During her time as a director, she created a ‘loan agreement’ purporting to show that Global Merces had received a loan of $500,000 while the loan agreement was a false document which had not been executed. Following this, Grofski arranged for the transfer of $500,000 of investor funds into the Global Merces operating account.
She also provided the falsified loan agreement and evidence of the $500,000 account balance to the auditors of Global Merces.
The regulator said Grofski did so to convince the auditors that they did not need to raise concerns about the solvency of Global Merces, an Australian financial services (AFS) licensee, with ASIC.
As a result of her dishonesty-based convictions, Grofski will be automatically disqualified as a company director for five years.
The matter was prosecuted by the Commonwealth Director of Public Prosecutions following an investigation and referral by ASIC.
In October, 2021, Grofski pleaded guilty to one count of providing false information to the auditors and one count of engaging in conduct resulting in the falsification of books and records relating to the affairs of Global Merces.
On 21 January 2020, ASIC suspended the Australian financial service (AFS) licence of Global Merces for a period of six months and, on 31 January 2020, following an application by ASIC, the Federal Court ordered that Global Merces be wound up.
In July 2020, ASIC cancelled the AFS licence of Global Merces.
Seem a bit light punishment considering it was calculated fraud & deception.
And yet a planner can be penalised huge $, forced to repay fees even if services were provided to clients and hung drawn and quartered by losing their entire business if they have a wrong punctuation mark on their FSG or FDS!!