A former mortgage broker has pleaded guilty to six charges of deception totalling $1.902m.
Michael Samra faced charges relating to allegations he deceived investors into lending money to him and his company, ALC Group, between 13 January and 30 July 2009, an Adelaide district court heard.
While the investors believed their money would be lent to builders and property developers, Samra used the funds to repay interest and principle to other investors.
Samra pleaded guilty on 30 March and was remanded in custody after his bail was revoked. Sentencing submissions will be handed down on 11 May when the matter returns to court.
ALC group, which was based in the Adelaide suburb of Norwood, collapsed in 2009 with liabilities of approximately $40m.
Investigations by the Australian Securities & Investments Commission (ASIC) found around $66m entered the company’s bank account over a seven month period with the majority paid to investors.
In 2015, 12 charges of deception were laid totalling more than $12m. Samra pleaded guilty to six charges, while the remaining six charges were discontinued.
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