Charged: Former Storm Financial adviser, 1990s Australian rugby league player
A former Storm Financial Ltd financial adviser, Walter John 'Wally' Fullerton-Smith faced court this week, charged with making a false or misleading statement to obtain a financial advantage, according to the Australian Securities & Investment Commission (ASIC).
Fullerton-Smith, of Carrara, Queensland, and former Queensland and Australian rugby league player in the 1980s and 1990s, allegedly misled a couple from New South Wales in 2007. It was done with the intent of obtaining a financial advantage for both himself and for his wife, Kim Michele Fullerton-Smith.
He played for the St George Dragons from 1987 and 1992, played 12 State of Origin games for Queensland and eight tests for Australia.
He was banned for life from the financial services industry in November 2012.
Prosecuting the matter is the Commonwealth director of public prosecutions.
The elderly couple faced this conduct when Fullerton-Smith was procuring their units, valued at approximately $706,436.94 in an MLC MasterKey Unit Trust as security for the trust margin loan account.
The investment was implied to be safe if they signed documents that allowed a third party mortgage over them as security for a loan to either The Young Trust or Fullerton-Smith and his wife. He was the trustee of The Young Trust, with both he and his wife being the primary beneficiaries.
He did not tell the couple of the true nature of the documents.
Fullerton-Smith, who appeared at Sydney's Downing Centre Local Court, did not enter a plea. He was granted conditional bail, and surrendered his passport.
Further mention will be in 11 February 2014.
The penalty for the charge - one count under section 178BB of the Crimes Act 1900 (NSW) - is a maximum of five years in gaol.
Property Observer reported in 2011 regarding investors in the collpased Storm Financial needing to wait for some time for compensation over their losses.