Former DanFX director sentenced to jail for fraud

Former DanFX director sentenced to jail for fraud

Photo: Ibrahim Boran, via Unsplash.

Daniel Farook Ali, the former director of unlicensed foreign exchange trading business DanFX, has been sentenced to seven years and three months imprisonment for fraud, having dishonestly used investors' funds to buy a BMW for a personal associate and real estate for himself and his wife, among other expenses. 

Last week Ali pleaded guilty to five counts of fraud totalling $771,303 relating to his misappropriation of funds invested for trading and investment purposes between May 2016 and November 2017.

Ali will be eligible for parole from 5 July this year, having already spent time in custody since November 2021 when he was arrested in Poland and extradited to Australia in August of the following year.

In sentencing Ali, Judge Heaton KC said that his offending involved a level of sophistication over a period of time that exploited the trust of his victims, and his dishonesty contributed to particularly devastating financial positions for those victims.

Ali had previously been sentenced to two-and-half years' imprisonment in an unrelated conviction relating to fraud charges brought by the Queensland Director of Public Prosecutions, although his jail time was suspended after serving six months.

Based on that fraud conviction however, in November 2017 the Australian Securities and Investments Commission (ASIC) permanently banned Ali from providing financial services or engaging in credit activities. Later that month the regulator obtained orders in the Supreme Court of Queensland appointing Anthony Castley of William Buck as receiver over the assets of Ali, DanFX Trade and related companies.

Amidst ongoing civil proceedings commenced by ASIC which was also conducting an investigation into Ali's conduct, the former director fled the country in May 2018, and it took more than two years before a Queensland magistrate would issue a warrant for his arrest in December 2020 following an application from the corporate watchdog. 

While Ali was already in Poland, ASIC obtained orders in the Supreme Court of Queensland permanently restraining Ali from managing companies, after the Court found that he managed an unregistered managed investment scheme without an Australian financial services licence, and managed DanFX Trade and two related companies despite being disqualified due to his prior fraud conviction

His arrest in the European country was aided by the Australian Federal Police’s Fugitive Apprehension Strike Team, the Commonwealth Attorney-General’s Department, the Commonwealth Director of Public Prosecutions (CDPP) and Polish authorities.

 

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