Professional Misconduct

John Vafiadis

Address: Australia
Age: 49
Sex: Male
Occupation: Financial adviser
Date: 2 September 2011


Mr John Vafiadis, previously of Hobart, was sentenced on 2 September 2011 to 6 months imprisonment after an ASIC investigation found he provided unlicensed financial advice to investors.

Mr Vafiadis, 39, who was found guilty in the Hobart Magistrates’ Court on the 4 August 2011 of 2 counts of carrying on an unlicensed financial services business, will serve a minimum of 3 months imprisonment, with 3 months suspended on the condition that he enter into a recognisance of $4000 and be of good behaviour for a period of 5 years.

The Court found that Mr Vafiadis provided financial advice and dealt in financial products without authorisation or a licence between January 2006 and February 2009. During that time, Mr Vafiadis was paid a total of $233,713.99 in commission by the investors for his services. A total in excess of $1.3 million was invested in shares on his advice.

The Court made orders to the effect that Mr Vafiadis pay compensation to the investors. The amount of compensation is yet to be determined, but the Court heard that the 8 investors suffered financial losses estimated to be in excess of $800,000.

In sentencing Mr Vafiadis, Magistrate Catherine Rheinberger said Mr Vafiadis’ actions demonstrated a blatant disregard of the law for financial gain. Magistrate Rheinberger also said that Mr Vafiadis’ conduct amounted to a serious breach of the financial services legislation, which called for both a general and personal deterrent.