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Bail refused in $2.3m financial fraud case

AAP logoAAP 22/09/2016 Andrew Drummond

An exclusive Melbourne apartment where a former financial planner was arrested is allegedly among the proceeds of $2.3 million he's accused of swindling from a Hobart client.

Police on Wednesday raided the Southbank home of father-of-two Patrick Simon Mitchell, 42, which he shares with his new partner.

After being extradited to the southern capital on 24 charges of stealing by misappropriation, Mitchell made an unsuccessful bid for bail in the Hobart Magistrates Court on Thursday when details of the case against him were revealed.

Police prosecutor Darren Spinks said that in late 2009 Mitchell started managing the finances of a middle-aged woman from the upper-class suburb of Sandy Bay.

"(Mitchell) explained to her that whenever she wanted to transfer funds ... funds needed to go via an ANZ account," the prosecutor said.

Between February 2011 and October 2014 he allegedly coerced the woman to authorise a number of payments in amounts of up to $200,000 into an ANZ account in his name, in what was described a significant breach of client trust.

"On each occasion the withdrawal was sent by the complainant on the advice of the defendant."

The funds were then dispersed, including $212,000 to a credit card account and $561,000 for a "home deposit", the court was told.

"He was living in this house that was bought with proceeds from this particular offence," Mr Spinks said.

In May 2016 the woman was notified by another financial adviser of "serious concerns about the management of her financial accounts".

"This is not a situation where the defendant has given himself up, it is a situation police were alerted to," Mr Spinks said.

Defence lawyer Steven Chopping offered no plea on behalf of Mitchell.

"This is quite obviously a matter that will require considerable investigation," the lawyer said.

He argued that bail should be granted because the most recent allegation is two years old, adding that Mitchell's passport has been seized and he could live with his Queensland-based sister who was able to offer a substantial financial surety.

Magistrate Simon Cooper refused bail, citing a strong prosecution case.

"Given that you have no (community) connection with (Tasmania), you pose a significant flight risk," he said to Mitchell, adjourning the case to October 19.

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