A Victorian man has pleaded guilty to six charges of fraud totalling more than $600,000.
Barry Patrick, of Sunbury, Victoria, has pleaded guilty to the charges in the County Court of Victoria following an ASIC investigation.
The investigation found Patrick ran a financial services business without a licence and obtained property and a financial advantage by deception.
According to ASIC, Patrick nominated investors to be directors of a number of companies formed to purchase properties at Pakenham, Lilydale, Epping and Garfield for development. Those companies were Wrestway Property Development Pty Ltd, Exclusive Property Consultants Pty Ltd, Compendium Holdings Pty Ltd and Integrated Consolidated Holdings Pty Ltd.
To obtain funds for the property development projects, he persuaded investors to refinance their homes and/or establish self-managed superannuation
) and then invest their SMSF
in the developments.
Between 2007 and 2010, Patrick illegally obtained more than $600,000 from 14 investors to fund the property developments.
The funds raised 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.
In total, 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.
Five additional charges were withdrawn by the prosecution as a result of the guilty plea.
Patrick was conditionally bailed to appear before the County Court of Victoria for a plea hearing on 7 July 2016.