Former Reiwa-Capital Director Sentenced for Misappropriation of Investor Funds

Russell Sandiford, the former director of Reiwa-Capital, has been sentenced to two years and eight months’ imprisonment, to be served under an Intensive Correction Order (ICO), for his role in the dishonest use of investor funds. The sentencing took place on September 6, 2024, in the District Court of New South Wales.

Sandiford had previously pleaded guilty to two counts of dishonest conduct in connection with financial products, in violation of section 1041G of the Corporations Act. The charges stemmed from his misappropriation of $440,909 from investors over a period of two and a half years, between January 2020 and June 2022.

Sandiford solicited funds through two investment schemes: a ‘Hedge Fund,’ which required a nominal one-off fee in exchange for a share of profits from a trading account he managed, and an ‘Income Fund,’ where investors contributed capital with the expectation of it being pooled and used for trading foreign exchange and commodities. However, Sandiford diverted the funds for personal expenses, including gambling and entertainment, rather than investing as promised.

The Court noted that only $6,316 of the total $440,909 was returned to investors, highlighting the severe breach of trust. Judge O’Brien described Sandiford’s conduct as ‘brazen’ and driven by greed, compounded by his issues with alcohol, cocaine use, and gambling at the time of the offences.