Justin Micale, ATO assistant commissioner, says, “illegal early release” of assets from schemes is the biggest concern following the detection and prosecution of a scheme run by a financial adviser with more than 300 clients.
The County Court of Victoria last year found that Ahmed Saad, a superannuation and insurance adviser and director of Saad Wealth, obtained more than $1.5 million in 183 unlawful transactions from superannuation fund account clients.
This is how the scheme worked: Saad recommended clients roll over their super into a new scheme and sign a one-off remuneration payment ranging from $1550 to $11,400, or an ongoing monthly advice fees of at least $50, that was deducted from their superannuation accounts. He would typically rebate the client part of the fees.
Saad told the court he had been pressured by his clients who claimed they needed the money to pay personal debts.
Justice Richard Maidment said: “You devised and executed a fraudulent scheme. By so doing, you enabled clients of your private financial services business to obtain early access to superannuation benefits.”
Saad was sentenced to nine months’ imprisonment for one count of obtaining financial advantage by deception and one month’s imprisonment for one count of attempting to obtain financial advantage by deception.
The ATO says it prevented $170 million of illegal early releases last financial year and an additional $89 million up to the end of November.
Superannuation can normally only…
