Brisbane Financial Advisor Under Investigation by ASIC, Assets Frozen

Story Highlights

• Brisbane financial advisor Sunny Mahendra Prakash is under investigation by ASIC.
• Probe triggered by CommSec flagging suspicious activity in client investment accounts.
• The court froze Prakash’s assets and restricted travel, and the next hearing is set for May 16th.

Sunny Mahendra Prakash, a Brisbane-based financial advisor, is facing a serious investigation by the Australian Securities and Investments Commission (ASIC). The regulator announced on May 9th that it had initiated “urgent proceedings” against Prakash and his associated companies in the Federal Court.

Suspicious Activity Triggers Investigation

The investigation centers on Prakash’s financial dealings from January 28th, 2016, onwards. It was triggered by suspicious activity reports filed with ASIC by CommSec, a popular online share trading platform. Justice Meagher, presiding over the case, revealed concerns raised by CommSec regarding Prakash’s investment strategies for clients. These included the methods used to invest client funds, transfers between client accounts and those linked to Prakash and his associates, raising questions about potential misuse of client money for personal gain.

We have commenced urgent proceedings against financial adviser Sunny Mahendra Prakash and his related companies. We are currently investigating the businesses, including in connection with financial advice and activities on client trading accounts https://t.co/G4md8LcG9Q pic.twitter.com/ccAAHuPQrD

— ASIC Media (@asicmedia) May 9, 2024

Court Freezes Assets, Hearing Upcoming

Following the initial reports, the Federal Court froze Prakash’s assets and those of his related companies on March 28th, 2024. Additionally, Prakash was prevented from leaving Australia. On April 19th, both parties agreed to certain exemptions within the asset freezing order. The case is scheduled for a case management hearing on May 16th, 2024.

It’s important to note that this is an ongoing investigation, and no verdict has been reached. ASIC is yet to publicly disclose the extent of their investigation or potential charges against Prakash.