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Monday 6 October 2003
03-314 Former Victorian securities dealer permanently banned
Mr Martin James Donohue, of Brighton, Victoria, has been permanently banned from acting as a representative of a securities dealer or investment adviser, and from providing any financial service, following an investigation by the Australian Securities and Investments Commission (ASIC).

The banning order was made after ASIC found that Mr Donohue had engaged in misleading and deceptive conduct, and had not performed his duties as an authorised representative efficiently, honestly and fairly.

Mr Donohue was an authorised representative of Shaw Stockbroking Limited (Shaw Stockbroking), a licensed securities dealer and stockbroker.

ASIC found that in December 2000, Mr Donohue opened a client trading account in his mother’s name, and actively traded in shares and options. Mr Donohue’s mother did not authorise the opening or the trading of the account.

Between May and June 2002, Shaw Stockbroking notified Mr Donohue that the margin collateral in the account which he had opened in his mother’s name was insufficient to cover the exposure from the account’s options trading, and requested Mr Donohue have his client rectify the situation.

ASIC’s investigation found that Mr Donohue then forged the signature of his stepmother, who operated a legitimate trading account with Shaw Stockbroking, authorising shares valued at $120,000 to be used as collateral against the losses on the account which Mr Donohue had opened in his mother’s name. Mr Donohue’s stepmother was unaware of the use of her shares as collateral.

Shaw Stockbroking terminated Mr Donohue’s employment in September 2002, when it became aware of the conduct.

Investors can check whether an investment adviser or securities dealers has been banned from the industry.

Editor's note:

The permanent banning order made on 29 September 2003 was varied on 03 June 2013 so that the period during which Mr Donohue is prohibited from acting as a representative of a dealer or an

investment adviser ends on 07 June 2013.