Former Australian Forex and CFD Executive Pleads Guilty to Handling Suspected Scam Funds

Brendan Gunn, a former senior executive in Australia's retail forex and contracts-for-difference (CFD) sector, has pleaded guilty to dealing with more than AUD 181,000 that authorities say was reasonably suspected to be proceeds of investment scams.

The plea was entered at Sydney's Downing Centre Local Court following a prosecution by the Commonwealth Director of Public Prosecutions after an investigation conducted by the Australian Securities and Investments Commission (ASIC). Gunn is expected to return to court in February for sentencing.

The charges relate to conduct in early 2020, when Gunn was a director of Mormarkets Pty Ltd. ASIC alleged that the company accepted funds from Australian residents for cryptocurrency conversion and overseas investment opportunities that were later linked to international scam activity targeting retail investors.

According to ASIC, between 19 March and 15 May 2020, Gunn dealt with four investment amounts totalling more than AUD 181,000 after two Mormarkets bank accounts were closed by financial institutions due to suspected scam-related activity.

Following the account closures, Gunn received two bank cheques representing the funds and later transferred them to an associate. ASIC has highlighted the use of bank cheques after the loss of electronic banking access as a pattern associated with efforts to keep funds moving after accounts are flagged or terminated.

Regulators said Mormarkets experienced repeated disruptions to its banking relationships as concerns were raised about potential scam activity. Despite being informed of the reasons behind the closures, ASIC alleges attempts were made to open replacement accounts to continue receiving client funds.

Under section 400.9(1) of the Criminal Code (Cth), prosecutors are not required to prove that the accused personally operated the underlying investment scam. The offence instead focuses on whether there were reasonable grounds to suspect the funds were proceeds of crime at the time they were handled.

ASIC has pointed to Gunn's professional background in regulated financial services as a relevant factor. Before his involvement with Mormarkets, he held senior roles across Australia's retail forex and CFD industry, positions typically involving responsibility for compliance, payments and banking relationships.

The alleged conduct occurred during a period of increased regulatory concern over online investment scams, particularly those involving cryptocurrency and offshore trading schemes. Australian authorities have warned that such schemes often rely on locally registered entities to collect funds before transferring them overseas.

The case forms part of a broader enforcement focus on disrupting payment flows connected to investment scams. ASIC has repeatedly said its actions extend beyond scam promoters to individuals involved in processing or transferring suspect funds.

Proceeding summarily limits the maximum penalty. With the consent of prosecutors, the offence carries a maximum sentence of 12 months' imprisonment and/or a fine of up to AUD 12,600.

Gunn is scheduled to reappear in court on 10 February, when sentencing arrangements are expected to be addressed.