Financial adviser Russell Sandiford had a $3,000-a-week cocaine habit and acted ‘disgracefully’ in ripping off $500,000 from clients, court hears
A ‘shameful’ financial adviser who took almost $500,000 from clients was a drug user who spent around $3,000 a week on cocaine, a court has heard.
Russell Sandiford, 43, appeared in Sydney’s Downing Center District Court on Friday after pleading guilty in February to two charges of dishonest conduct in relation to a financial product or service.
The offense by Sandiford, the former director of Reiwa-Capital, involved obtaining $440,909 from 74 clients on the basis of investing it for trading, corporate regulator ASIC said.
But the money was used for other purposes in a scheme that ran the permit-less Sandiford from January 2020 to June 2022.
Sandiford’s lawyer Will Tuckey told a sentencing hearing that his client had been spending about $3,000 a week on cocaine and a large amount on alcohol at the time of the offences.
‘Disgraceful’ financial adviser Russell Sandiford (pictured), who took almost $500,000 from clients, was a drug user who spent around $3,000 a week on cocaine, a court has heard
More than $100,000 had also been spent with bookmaker Sportsbet, the court was told.
By the time ASIC got involved, Sandiford had $600 in this account and was later forced to go through Centrelink and go bankrupt.
Mr Tuckey said Sandiford’s behavior continued after he knew ASIC was investigating, but there was ample evidence he had changed since the crimes came to light.
“The 30 months were a shameful period in his life that he does not want to repeat,” he said.
Sandiford took amounts from victims ranging from $300 to $81,000 and used trusts to “lean” on people for money.
Mr Tuckey said Sandiford was likely remorseful as he had disclosed information to ASIC and intended to plead guilty early in the legal proceedings.
But he admitted his client had not yet taken steps to address his drug and alcohol problems, leading to a court adjournment so Sandiford could go to rehab.
“He’s going to jail one way or another,” Judge Christopher O’Brien said, adding that a full prison sentence was “still a good option.”
Sandiford faces a prison sentence of up to 15 years for these crimes. He will be sentenced on September 6.
Sandiford’s lawyer Will Tuckey told a hearing that his client had spent about $3,000 a week on cocaine and a large amount on alcohol at the time of the offences.