ASIC permanently bans adviser who stole client funds

A financial adviser based on Queensland's Hope Island was permanently banned by the corporate watchdog after he was found to have misled clients about potential returns and used their funds for his own expenses.

Delan Pagliaccio is banned from providing any financial services, controlling any entities that carry on a financial services business, and performing any function within a financial services business. ASIC said he is not a fit and proper person to provide financial services.

Between May 2017 and June 2022, Pagliaccio was found to have engaged in dishonest and deceptive and misleading conduct related to a financial product or service. At the time, he was the director of Veridian Securities and Veridian Markets, now in administration. He was also found to have continued to provide services through Veridian Markets after its AFSL authorisation was revoked.

Pagliacco was found to have told prospective clients that his business could invest their funds in Macquarie Bank Cash Management accounts and guarantee them annual returns of 8%. He then was found to have used those clients' funds for personal expenses without permission, and failed to return the funds to clients even when redemption requests were made.

Pagliacco was also director of Synergy Asia Pacific Partners, known as SKR Private and Synergy Equities Group. ASIC has now cancelled this company's AFSL as well.

The ban was effective 5 December 2023. According to ASIC's Financial Adviser Register, between September 2010 and January 2015, Pagliaccio jumped between at least six different licensees. His ASIC FAR record has not been updated since June 2016.

In 2015 he joined Sequoia Financial Group's MDS Financial Services as its head of retail and institutional broking. Before that, he was also a senior executive within ANZ's E*Trade Australia business, later rebranded to ANZ Share Investing.

Pagliaccio has the right to appeal ASIC's decision.