The Australian Securities and
Investments Commission has condemned two directors of Australian firms who stole client money, coming as the latest in a string of
convictions by the country’s financial watchdog.

Peter Robin Hickey has been convicted
of three counts of stealing A$230,000 ($244,000) from investors, who thought they were
buying into property and renovations through his firm Cape Bonbon. Western Australia-based Hickey allegedly used the funds to pay
off personal debts, including his wife’s credit card.

The money was stolen between 14 April
and 8 July 2005, and has not yet been returned to clients, according to ASIC. The
charges made carry a maximum penalty of 10 years’ imprisonment on each
count.

Hickey,
who is now bankrupt, will be sentenced in the Perth District Court on 14
March 2012. He has been released on bail pending a pre-sentence report and
other reports.

“The outcome of the trial provides important guidance of what ASIC
expects of directors. In this instance, ASIC expects directors to act honestly
and not use their position to advantage themselves,” ASIC said.

Separately, ASIC also announced it had permanently banned a former South Australian
company director from providing financial services after he dishonestly
obtained more than A$400,000 from clients over a two-year period.

The
action against Craig John Horsell, of Adelaide, follows an ASIC investigation
into his time as an employee and a director of insurance businesses Horsell
International and PSC Horsell Insurance Brokers between 22 January 2007 and 23
July 2010.

ASIC’s
investigation found that between 2007 and 2010 Horsell acted
dishonestly and in breach of financial services laws when he authorised the
transfers of 72 insurance premium payments from clients totaling A$409,635.24, into his bank account. He did not purchase the insurance products as requested
by the clients.

ASIC
banned Horsell in order to protect the public, deter similar conduct and
maintain consumer confidence in the financial services sector. The watchdog said it had recovered all outstanding funds from Horsell so that no clients face any
financial losses.