Brendan Gunn Pleads Guilty in Australian Case Over Scam-Linked Proceeds
What Did Brendan Gunn Admit in Court?
Brendan Gunn, a former senior figure in Australia’s retail forex and contracts-for-difference sector, has pleaded guilty to dealing with more than AUD 181,000 that authorities say was reasonably suspected to be proceeds of investment scams.
The guilty plea was entered on Tuesday in Sydney’s Downing Centre Local Court following a prosecution by the Commonwealth Director of Public Prosecutions later than an investigation by the Australian Securities and Investments Commission. Gunn is due to return to court in February for sentencing.
The charges relate to events in ahead 2020, when Gunn was a director of Mormarkets Pty Ltd. According to ASIC, the company accepted funds from Australian residents for cryptocurrency conversion and purported overseas investment opportunities that were later linked to international scam activity targeting retail investors.
Investor Takeaway
Why Bank Cheques Became Central to the Case
ASIC said that between 19 March 2020 and 15 May 2020, Gunn dealt with four investment amounts totalling more than AUD 181,000 later than two Mormarkets bank accounts were closed by financial institutions due to suspected scam activity. Following those closures, Gunn received two bank cheques representing the funds and later transferred them to an associate.
Investigators highlighted the use of bank cheques as a critical detail. ASIC alleges that the cheques were used once electronic banking channels became unavailable, a pattern regulators associate with efforts to keep funds moving later than accounts have been flagged or terminated.
In its summary of the case, ASIC said Mormarkets’ banking relationships were repeatedly disrupted as banks raised concerns about potential scam activity. Despite being informed of the reasons behind those closures, attempts were allegedly made to open replacement accounts to continue receiving client funds.
Under section 400.9(1) of the Criminal Code (Cth), prosecutors are not required to prove that the accused personally ran the underlying scam. The offence hinges on whether there were reasonable grounds to suspect the funds were at the time they were handled.
Why Gunn’s Industry Background Matters
Regulators have placed weight on Gunn’s professional history in bringing the case. Before his involvement with Mormarkets, he held senior management roles across Australia’s retail forex and CFD industry, including positions that typically involve oversight of payments, compliance controls, and banking relationships.
ASIC has argued that individuals with experience in should recognise warning signs when banks repeatedly close accounts or flag transactions as suspicious. In this case, that context underpins the “reasonable suspicion” threshold relied upon by prosecutors.
The alleged conduct occurred during a period of rising concern over , particularly those tied to cryptocurrency and offshore trading schemes. Australian authorities have warned that scam networks often rely on locally registered entities to collect funds before transferring them overseas, placing ahead-stage payment handlers under closer scrutiny.
Investor Takeaway
How the Case Fits Into Australia’s Broader Crackdown
The prosecution sits within a wider enforcement push by ASIC across retail trading and crypto-linked investment activity. In the years following the alleged conduct, the regulator introduced product intervention measures in the CFD market, including leverage caps and marketing restrictions aimed at limiting retail losses.
ASIC has also stepped up action against crypto-related scams, which it has repeatedly identified as one of the quickest-growing sources of consumer harm in Australia. The regulator has stressed that enforcement efforts extend beyond scam promoters to those involved in processing or transferring funds.
By proceeding summarily in the Local Court, the case carries a lower maximum penalty than indictable proceedings. With the consent of the Director of Public Prosecutions, the matter faces a maximum sentence of 12 months’ imprisonment and/or a fine of up to AUD 12,600.
said the prosecution reflected a focus on payment facilitation within scam ecosystems.
“Stopping scam activity means disrupting the flow of funds,” Court said. “Those who handle or move money connected to scams, particularly when there are clear warning signs, should expect regulatory action.”
What Comes Next
Gunn is scheduled to reappear in court on 10 February, when a sentencing date is expected to be set. The court is likely to consider factors such as cooperation with authorities, the circumstances surrounding the bank account closures, and Gunn’s role in transferring funds later than traditional banking access was withdrawn.
ASIC has not said whether further enforcement action linked to Mormarkets or associated individuals is ongoing. The regulator has, however, repeatedly stated that investigations into scam networks often extend beyond a single defendant.
As Australia continues to tighten oversight of retail trading, crypto payments, and scam prevention, the case highlights how enforcement attention has expanded toward the financial infrastructure that allows fraudulent schemes to operate, and the individuals responsible for keeping that infrastructure in motion.
