Remedy Housing officials guilty of 'interest-free mortgage' deception

Three former officials of Remedy Housing have been found guilty of dishonesty offences in relation to a deceptive scheme that falsely promised consumers interest-free mortgages, ASIC reported.

Following a four-week trial in the County Court of Victoria, a jury convicted the officials for conduct that occurred between 2019 and 2021.

• Brent Lindsay Smith, of St Albans, Victoria, was found guilty of seven counts of dishonestly using his position as a director of Remedy Housing.
• Mahmoud Khodr, of Melbourne, Victoria, was found guilty of two counts of dishonestly using his position as a director and officer.
• Fue Heidi Mano, also of St Albans, was found guilty of 11 counts of dishonestly using her position as an officer of the organisation.

Each offence carries a maximum penalty of up to 15 years' imprisonment and/or a fine of up to $765,000.

False claims about interest-free mortgages and refunds

Smith, Khodr and Mano were found to have made misleading representations to consumers, including claims that:

• Remedy Housing would provide an “interest-free mortgage” and title to a home within 12 months upon payment of a $10,000 deposit or more,
• If unable to deliver the mortgage, the deposit would be refunded in full,
• The scheme was backed by overseas investors, including former Samoan rugby union player Trevor Leota.

Trevor Leota was not charged in relation to this offending.

In reality, Remedy Housing had no investors, issued no mortgages, and customer deposits were instead used to fund the scheme’s operations and were transferred to the personal accounts of Smith and Khodr.

Targeting vulnerable communities and legal action by ASIC

Remedy Housing was operated by Smith and Khodr as director and secretary, respectively.

Mano and Leota were involved in promoting the business to consumers, particularly within Pacific Islander communities across Australia and New Zealand.

The matter was prosecuted by the Commonwealth Director of Public Prosecutions following a lengthy ASIC investigation.

On June 17, 2021, ASIC obtained interim orders and injunctions in the Federal Court to shut down Remedy Housing and freeze assets linked to Smith, Khodr, Leota, and the company.

This was followed by charges laid in June 2022 and a complex legal process involving contested committal hearings, multiple directions hearings, and appeals on admissibility of evidence.

A trial commenced in June 2025, where the jury returned convictions on all counts

ASIC: A clear message on financial dishonesty

The convictions follow an investigation by ASIC and a prosecution by the Commonwealth Director of Public Prosecutions.

ASIC Chair Joe Longo (pictured) said the case sends a strong message to the industry.

“The jury’s decision in this case demonstrates the community’s concern with deception of this scale,” Longo said in a media release. “This prosecution demonstrates ASIC’s commitment to ensuring dishonesty in the credit and financial services industry is penalised.”

Sentencing in September – support for affected consumers

A sentencing hearing for the three convicted officials has been scheduled for Sept. 9.

Consumers seeking guidance on property investment or mortgage products can access resources via Moneysmart.gov.au.

For further information on ASIC enforcement actions, visit asic.gov.au.