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Brett Paul Trevillian, a former Credit Suisse metals trader and director of Metal Alpha, has been sentenced to three years’ imprisonment for forging reports about the performance of his trading strategy known as The Gold Method while he was the investment manager of AlphaThorn.
The sentence, which has been stood over until 20 December 2024, comes six months after Trevillian pleaded guilty to two counts of making a false document to obtain a financial advantage under the NSW Crimes Act.
Trevillian was arrested at Sydney Airport on 20 July 2023 after landing back in Australia from overseas following a warrant secured by the Australian Securities and Investments Commission (ASIC).
ASIC had alleged that between April 2019 and October 2019 Trevillian created four forged portfolio performance verification reports relating to two investment products offered by AlphaThorn, which later changed its name to Trading Life Services, an investment business that traded in global precious metals markets.
The products were managed discretionary account investments offered to wholesale investors, being the Secured Service and the Enhanced Service.
The corporate watchdog had alleged that AlphaThorn provided the portfolio performance verification reports to potential investors and that the reports falsely verified or claimed a history of successful investment returns.
ASIC says the reports also falsely claimed that trading had been conducted through a particular broking firm and that the reports had been produced by an external firm of accountants who had verified actual trading, including forging the signature of an accountant.
ASIC stripped Trevillian’s company Metal Alpha of its financial services licence on 19 May 2022 after the company confirmed it was no longer carrying on a financial services business and had no intention to resume trading.
The investigation also led to the banning in December 2022 of Trading Life Services and former director Gabriel Yakob, now known as Gabriel Jakob, from providing financial services.
On 7 May 2024 at the Downing Centre Local Court, Trevillian pleaded guilty to two offences of making a false document with the intention to obtain a financial advantage, one offence in respect to reports relating to the Secured service product and one offence in respect of a report relating to the Enhanced service product.
Trevillian was sentenced last Friday to three years of imprisonment, although the sentence was stood over until 20 December 2024 while Trevillian is assessed for suitability for an Intensive Correction Order.
“ASIC welcomes the sentencing decision which reflects our ongoing efforts to stamp out misconduct,” says ASIC deputy chair Sarah Court.
“Mr Trevillian failed to fulfil his legal obligations, acted dishonestly, made false and misleading representations and breached the trust of those he was engaged to act for.”
The maximum sentence for making a false document to obtain a financial advantage under the NSW Crimes Act 1900 is 10 years' imprisonment.
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