A “shameful” financial adviser who scammed almost $500,000 from his clients was a drug user who spent around $3,000 a week on cocaine, a court heard.
Russell Sandiford, 43, appeared in the Downing Center District Court in Sydney on Friday after pleading guilty in February to two counts of dishonest conduct relating to a financial product or service.
The breach by Sandiford, a former director of Reiwa-Capital, involved obtaining $440,909 from 74 clients by investing it in trading operations, corporate regulator ASIC said.
But the money was used for other purposes in a scheme that Sandiford, without a license, ran from January 2020 to June 2022.
Sandiford’s lawyer, Will Tuckey, told a sentencing hearing that his client had been spending about $3,000 a week on cocaine and a large amount on alcohol at the time of the crimes.
‘Shameful’ financial adviser Russell Sandiford (pictured), who scammed almost $500,000 from his clients, was a drug user who spent around $3,000 a week on cocaine, a court heard.
More than $100,000 was also spent at the Sportsbet bookmaker, the court was told.
When ASIC became involved, Sandiford had $600 in this account and was then forced into Centrelink and declared bankruptcy.
Tuckey said Sandiford’s behavior continued after he learned ASIC was investigating, but there was ample evidence he had changed since the crimes came to light.
“The 30 months were an embarrassing period of your life that you don’t want to repeat,” he said.
Sandiford took amounts ranging from $300 to $81,000 from victims and used relationships of trust to “lean” on people in exchange for money.
Tuckey said Sandiford was likely remorseful given he had made disclosures to ASIC and intended to plead guilty early in the court process.
But he admitted his client still had to take steps to address his drug and alcohol problems, leading to a court adjournment so Sandiford could attend rehab.
“He will go to jail one way or another,” Judge Christopher O’Brien said, adding that a full-time prison sentence “was still an option.”
Sandiford faces a maximum of 15 years behind bars for the crimes. Her sentencing is scheduled for September 6.
Sandiford’s lawyer, Will Tuckey, told a sentencing hearing that his client had been spending about $3,000 a week on cocaine and a large amount on alcohol at the time of the crimes.