investments watchdog warns to protect nest egg from frauds

Australia’s investments watchdog is warning people to be vigilant with their finances as a spate of investment scams highlight the dangers posed by deceptive financial advisers who abuse the trust of friends and family.

In the wake of the high-profile case of Melissa Caddick – believed to have stolen $23 million from 60 clients before disappearing – an investment manager from the northern beaches was sentenced to at least four years in jail this week for stealing $2.9 million from 13 clients.

Ross Hopkins, who was a registered financial adviser and director of fund manager QWL based in Seaforth, misappropriated money from self-managed superannuation funds he was managing. Making 167 authorised transactions from clients’ accounts, he spent the money paying off debts and personal expenses including rent, holidays and school fees.

In another case of…