The statement said the court has advised customers that Nakhl would set up a self-managed pension fund and invest pensions and other funds in commodities such as stocks, managed funds and high interest bank accounts.
"Instead of investing in 12 investors' funds in these products, Nakhl said he was pleased with the fund and used it for his own purposes.
"Nakhl lied to investors, investing money in accordance with their advice and saying that the investment is well underway.
According to the ASIC statement, Nakhl tried to cover up his mistakes by letting 12 investors sign documents authorizing Nakhl to use the funds in the way he did.
"Nakhl deliberately deceived the customer and used the amount he saved," said Sean Hughes, chairman of ASIC.
"Customers should be able to trust financial advisors, in this case Nakhl has unfairly and deliberately broke customer trust."
Customers should be able to trust financial advisors. In this case, Nakhl deliberately and dishonestly violated the trust of the customer.
Sean Hughes of ASIC
In 2013, ASIC has banned Nakhl in Illawong, southern Sydney, from receiving financial services and has promised not to run the company for 15 years.
At that time, the ASIC announced an open statement that Nakhl paid for "private sports car and motorbike rental business and his own business expense".
ASIC froze Nakhl's assets in 2013, which was valued at $ 7.7 million. He was declared bankrupt and SydFA was put into liquidation.
The victims of Nakhl pursued themselves and their associations through civil courts to compensate for their losses.
As part of that, two of his former clients, husband and wife, said he had committed $ 2 million in retirement savings to Nakhl after a 20-year accountant died in the NSW Supreme Court in 2014.
They said they wanted the money to be "conservatively invested" in the courts. In early February 2013, one of the victims told Nakhl, "I wanted to retire at the end of the year because my pension was gone, and I was confident that his money was safe."
The ASIC froze all of Nakhl's funds and said that Nakhl used the money for other purposes.
Mathew Dunckley is a business editor for The Sydney Morning Herald and The Age. Mathew based in Melbourne's newsroom has almost 20 years of experience as a journalist and editor.