Three Remedy Housing officers were jailed for dishonesty offences linked to a so‑called interest‑free mortgage scheme.
Smith was sentenced to six years and two months’ imprisonment, with a non-parole period of three years and six months. Khodr received five years, with a non-parole period of three years, while Mano was sentenced to 30 months, with 18 months to serve followed by a 12‑month recognisance release order, ASIC reported.
The charges followed a lengthy ASIC investigation and earlier court action in 2021 to shut the scheme down, with the matter later prosecuted by the Commonwealth Director of Public Prosecutions.
Between November 2019 and February 2021, the company accepted deposits totalling $1.83 million from about 107 customers, many from Pacific Islander communities in Australia and New Zealand.
Smith and Khodr were found to have jointly misappropriated $754,574, while Smith also misappropriated a further $19,500. The court heard that customer funds were used to operate the scheme or transferred to the personal accounts of Smith and Khodr, and that no mortgages were ever provided.
“The conduct of Mr Smith, Mr Khodr and Ms Mano relied on building and maintaining trust with customers over long periods of time. This trust was significantly breached,” ASIC Deputy Chair Sarah Court said. “This matter demonstrates ASIC’s commitment to ensuring dishonesty in the credit and financial services industry is penalised.”
ASIC found that consumers were told they would receive an interest‑free mortgage within 12-months if they paid a deposit of at least $10,000, that deposits would be fully refunded if a loan was not delivered, and that Remedy Housing was backed by overseas investors, including a former Samoan international rugby union player, Trevor Leota, who has not been charged in the proceedings. None of these claims were true.
In sentencing, Judge Claire Quin described Remedy Housing as “a sophisticated scheme that targeted vulnerable customers and involved the misuse of a significant amount of funds for personal use.”
Reparation orders were made requiring Mano and Smith to repay more than $190,000 to victims. Each dishonest use of position offence carried a maximum penalty of up to 15 years’ imprisonment and a substantial fine.
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