In 2021, Emily* and her partner decided to start seriously looking at the feasibility of buying a home, so they sought advice from a financial adviser recommended to them by close friends.

During their initial meetings, they outlined their financial situation and future goals.

“All our communications with the adviser were professional, everything seemed legitimate, and things were travelling along nicely for a couple of years,” Emily explained.

They were able to purchase a house in 2022, just as the RBA began the steepest and fastest interest rate increases ever.

In early 2023, the adviser introduced an investment opportunity described as a ‘high-interest, short-term bond’.

Interest rate hikes had increased their monthly mortgage repayments by 50%, and their advisor sold this strategy to them as a way to make the high interest rates “work for you” instead.

Under considerable mortgage stress, but comfortable with a six-month commitment, the couple invested approximately $30,000, intending to review the outcome at the end of the term.

As the investment period neared its end, Emily tried to contact the adviser to check on its performance and discuss whether to withdraw or reinvest the funds. However, she struggled to reach him.

“We couldn’t get him to commit to a meeting time. He kept postponing, saying he wasn’t well, had family things to deal with. It was a little strange, but I didn’t initially think it was anything sinister, as sometimes it was even someone from his firm who would call to say he wasn’t well,” she said.

Eventually, the adviser arranged a meeting at their home. During this meeting, he told them he was leaving the industry and offered to refer them to another adviser.

He reassured them their investment could be withdrawn and said he would handle the paperwork.

Shortly afterwards, Emily received correspondence from the adviser’s employer stating that his employment had been terminated and that the firm would contact her with further information.

“This is when we became uneasy – we had two different stories, and by that point, our original adviser was giving us the run around when it came to withdrawing our investment,” Emily recalled.

Within days, the couple received a voicemail message from the financial crimes division in their state to let them know that their former adviser was under investigation.

“We initially thought it was a really strange phone call, but when we searched the detective’s name, we realised very quickly that we were caught up in something much bigger,” Emily said.

They soon discovered they had been victims of deceptive conduct. The money they had invested had never been placed into any legitimate product. Instead, the adviser had misappropriated funds from more than thirty clients to support his gambling addiction.

“Of course, we were shocked and angry – this person knew intimate details about our finances, including our concerns for the future, and he took advantage of that without hesitation,” Emily said.

Emily and her partner worked closely with authorities to gather evidence. In April 2025, the adviser was convicted of obtaining a financial advantage by deception.

The couple lodged a complaint with the Australian Financial Complaints Authority (AFCA), which ruled in their favour, finding that the adviser had misled them by promoting a fictitious investment.

They were subsequently deemed eligible for compensation through the Compensation Scheme of Last Resort (CSLR) and were able to recover the full amount of their investment.

“We had essentially written off any chance of recovering our money, so learning of the CSLR’s existence and that we would be eligible for compensation was an enormous relief.”

*Name changed for privacy