A Victorian man has pleaded guilty to six charges relating to illegally obtaining over $600,000 from investors involving the use of SMSFs, following an ASIC investigation.
ASIC said the charges related to “carrying on a financial services business without a licence, and obtaining property and a financial advantage by deception.”
The man, Mr Barry Patrick, was involved in property development, according to ASIC.
“To obtain funds for the property development projects, he persuaded investors to refinance their homes and/or establish self-managed superannuation funds (SMSF) and then invest their SMSF in the developments,” said a statement by ASIC.
“Between 2007 and 2010, Mr Patrick illegally obtained more than $600,000 from 14 investors to fund the property developments.”
“The funds raised by Mr Patrick were not used to develop the properties but were instead used to pay interest payments to past and existing investors and to meet repayments on loans, as well as for personal use.”
Mr Patrick pleaded guilty to three charges of obtaining property by deception, two charges of obtaining a financial advantage by deception and one charge of carrying on a financial services business without a licence.
ASIC says that five other charges were “withdrawn by the prosecution as a result of the guilty plea”.
“Mr Patrick was conditionally bailed to appear before the County Court of Victoria for a plea hearing on 7 July 2016,” said ASIC, noting that the case is being prosecuted by Commonwealth Director of Public Prosecutions.
“SMSF’s continue to be a strong focus of ASIC’s enforcement work.”