The Brisbane District Court in Australia has sentenced Daniel Farook Ali, former director of DanFX Trade Pty Ltd to seven years and three months imprisonment for fraud.
The order follows the arrest and extradition of Daniel Farook Ali back to Australia after years on the run. He left the country on 8 May 2018 during an ongoing ASIC investigation into his conduct, leading to civil proceedings commenced by ASIC against him. Daniel Ali was found in Poland and extradited in July 2022.
Once back in Australia, ASIC charged him with eight counts of fraud totaling $977,000 at the Brisbane Magistrates Court.
Daniel Farook Ali scammed 200 investors out of AU$13 million
The ASIC first sued Daniel Farook Ali after a $13 million FX scam between May 2016 and November 2017 in which he dishonestly used funds provided to him by investors for trading and investment purposes for unauthorized purposes, including buying real estate and luxury cars for his family members and related companies, and to pay returns to other investors. In some cases, the funds provided to the alleged fraudster by investors had come from investors’ self-managed superannuation accounts, the regulator added.
ASIC commenced proceedings in 2017 alleging that Daniel Ali, through DanFX, operated an unregistered managed investment scheme known as the Daniel Ali Scheme, which raised approximately $13 million from more than 200 investors.
On 23 July 2018, the Court found that:
- Mr Ali, DanFX and two related companies operated the Daniel Ali Scheme, which was a managed investment scheme that was required to be registered under the Corporations Act but was not so registered;
- Mr Ali contravened the Corporations Act by operating the Daniel Ali Scheme without holding an Australian financial services licence; and
- Mr Ali contravened the Corporations Act by managing DanFX and two related companies, despite being disqualified from managing corporations due to a prior conviction for fraud.
Eligibility for parole from 5 July 2024
The Court sentenced Mr Ali to seven years and three months imprisonment, with eligibility for parole from 5 July 2024. The Court took into account the time Mr Ali has already spent in custody since November 2021 when imposing the sentence.
The matter was prosecuted by the Commonwealth Director of Public Prosecutions following a referral from ASIC.
