Spruiker in Sonray gets ban

The Australian Securities and Investments Commission said its investigation found Rory Deutsch, of Box Hill North, failed to comply with financial services laws between April 2008 and the end of April this year and "there may be reason to believe that he would not comply with financial services law in the future".

ASIC said that through his company, Romad Financial Services, Mr Deutsch sold stakes in two managed investment schemes despite lacking a licence to do so and marketed the schemes in a misleading or deceptive way.

Mr Deutsch has the right to appeal against ASIC's decision to the Administrative Appeals Tribunal.

In February, Romad gained approval to make Sonray founder Russell Johnson an authorised representative through his private company, RJ Capital.

ASIC revoked Johnson's authorisation on August 1, at his request, and in September he was charged with 24 offences over Sonray's collapse, including theft and false accounting. His case returns to court next month.

Mr Deutsch had been the "key person" responsible for Romad's licence since 2004, ASIC said.

AAT records show he was an "enthusiastic" supporter of investment in Norm Carey's Westpoint, one of Australia's most spectacular property flops, when he was compliance and technical manager of another financial services company, Glenhurst.

ASIC convinced the Victorian Supreme Court to wind up Business Strategies No 5, a retirement village company of which Mr Deutsch was a director, in 2007.