​Former mortgage broker guilty of $1m fraud

by AB31 Mar 2014
A former mortgage broker and Westpac branch manager is likely to be locked up after pleading guilty last week to more than 22 offences, including stealing more than $1 million of investors’ money.

At the time of the offences, Carlo Cini, 56, was the sole director of Williamstown-based company, C Cini & Company, which is now in liquidation.

 An ASIC investigation revealed that between 2007 and 2008, Cini raised more than $1 million from seven investors based on representations that the funds would be used for property development being undertaken by the company.

The funds were then used for other purposes, including other company-related expenses and personal payments.

It was also alleged he obtained a financial advantage for the company by evading debts due to the investors by issuing cheques that were worthless but had a face value of more than $700,000.

A further charge related to an investor lending funds to the company on the basis of reckless statements made by Cini.

In total, Cini pleaded guilty to:

• 10 counts of obtaining property by deception
• one count of fraudulently inducing a person to invest money
• 11 counts of obtaining a financial advantage by deception.

The former Westpac branch manager, property developer and mortgage broker was given a reprieve from a number of other charges he faced as a result of his early guilty plea.

Liquidator Paul Burness, who investigated C Cini & Company, told the court the creditors were “really angry and upset”, the Herald Sun reported.

Although Burness found $1.1 million of the stolen money was used for personal expenses, he believed that amount would be much higher if the company’s financial statements were properly settled.

Cini’s behaviour was “atrocious”, Burness said

Cini has been conditionally bailed to appear before the County Court of Victoria for a plea hearing on 31 July.

The matter is being prosecuted by the Commonwealth Director of Public Prosecutions.


 

COMMENTS

  • by Regional broker 31/03/2014 1:35:55 PM

    Is this a mortgage fraud , he was obtaining property by deception .