SHOALHAVEN accountant Blake Richards has been expelled and fined by the National Institute of Accountants following an investigation into his business dealings.
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Mr Richards did not attend the NIA’s disciplinary tribunal hearing to state his case, and has not appealed against the decision banning him for life from membership of the national body.
The NIA also hit Mr Richards with a $5000 fine and costs of $1000 after finding him guilty of conduct that breached the NIA’s constitution and professional requirements.
This is understood to be the largest fine the NIA’s disciplinary tribunal has even dished out.
While the NIA would not reveal details of the complaints it investigated, they are understood to involve claims of fraud, poorly constructed investment advice and the failure to inform clients they were investing in related entities of the accountant.
These complaints were detailed in a large number of submissions made to the organisation.
The NIA viewed the matters so seriously it took the unprecedented action of suspending Mr Richards’ membership before the disciplinary tribunal met.
But that action was too late for a large number of people, with Mr Richards leaving a trail of broke dreams and shattered lives throughout the South Coast.
Already several of his former clients have lost their homes, and there are predictions more will yet lose their houses because of following the advice of Mr Richards, who is believed to have taken $40 million out of the local region.
Much of that went into Longbeach Lifestyle, a real estate development company that bought coastal properties near Batemans Bay with money invested by individuals.
But it collapsed in July 2005 owing creditors $3 million, leaving 23 investors out of pocket.
Those investors were promised returns of 35 per cent annually on Longbeach, according to people who lost their money in the company – one of 11 Richards has been involved with and liquidated.
Investigations into Mr Mr Richards’ activities are continuing on several fronts, including the Deputy Commissioner of Taxation lodging action for about $1.6 million against him in the Supreme Court.
Other professional organisations including the tax agents’ registration board are also believed to be looking at taking action against Mr Richards.
