A man has been sentenced to over 6 years in prison for fraud which involved SMSFs.
According to ASIC, Mr Barry Patrick has been sentenced to 6 years and 3 months in prison after pleading guilty to six charges: 3 of obtaining property by deception, 2 of obtaining a financial advantage by deception and one charge of carrying on a financial services business without a license. ASIC noted that he will be eligible for parole after serving 3 years and 9 months.
ASIC says that Mr Patrick nominated investors to be directors of companies formed to purchase properties in Victoria for development.
“To obtain funds for the property development projects, Mr Patrick persuaded investors to refinance their homes and/or establish self-managed superannuation funds (SMSF) and then invest their superannuation in the developments,” says an ASIC statement following the sentencing.
“Between 2007 and 2010, Mr Patrick illegally obtained more than $600,000 from 14 retail investors to fund the property developments because of financial advice provided by him when he was not authorised to do so.”
“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 his own personal use such as artwork and jewellery.”
“In sentencing Mr Patrick, His Honour Judge Gavan Meredith noted that Mr. Patrick had shown little remorse for leaving his victims lives in ruin and that the offending was protracted, calculated and at times brazen,” said ASIC.
ASIC Commissioner Peter Kell welcomed the sentence, saying: “The conduct of Mr Patrick exposed vulnerable members of the community to severe financial loss and hardship. ASIC will not hesitate to prosecute this type of deceptive and harmful conduct.”