ASIC stated the conduct occurred between March 2009 and March 2011 when Mr Nakhl was an authorised representative of Australian Financial Services Limited, now in liquidation, and from about March 2011 to about September 2013 when he was the sole director of SydFA Pty Ltd, now in liquidation.

In November 2013, ASIC accepted an enforceable undertaking from Mr Nakhl after it identified concerns that Mr Nakhl gave unauthorised financial product advice and gave financial product advice without a reasonable basis.

The investigation also found that Mr Nakhl made false and misleading statements and engaged in misleading and deceptive conduct, including making statements about the returns clients could expect and the risks of the investments he promoted.

“Specifically, Mr Nakhl advised some clients, including those in self-managed superannuation funds, to advance money to him so that he could invest it in a high-interest rate account on their behalf and pay them a fixed return,” ASIC said in an earlier statement.

“ASIC is concerned Mr Nakhl instead spent the money, among other things, on his private sports car and motorbike hire business and himself.”

ASIC deputy chairman Peter Kell said Mr Nakhl “breached the trust many investors placed in him”.

“Setting up an SMSF is one of the most significant steps an investor can take, and where an individual or company’s conduct unlawfully puts that investment at risk, ASIC will take action.”