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SMSF Investors Hit by $1m Property Scheme

SMSF Investors Hit by $1m Property Scheme
Mr Barry John Patrick, 71, of Sunbury, Victoria, has appeared in the Melbourne Magistrates' Court on 15 charges following an ASIC investigation.

ASIC allege Mr Patrick illegally obtained more than $1 million from 14 investors between 2007 and 2010, purportedly to fund property development.

ASIC's investigation led to Mr Patrick being charged with:

    8 counts of obtaining property by deception
    5 counts of obtaining financial advantage by deception
    1 count of theft; or in the alternative a further count of obtain financial advantage by deception, and
    1 count of running a financial services business without an Australian financial services (AFS) licence.


ASIC allege that in many instances, Mr Patrick formed a company to purchase a property for development. To obtain funds for the property development projects he allegedly persuaded investors to refinance their homes and / or self-managed superannuation funds. Mr Patrick is also accused of persuading investors to take out additional loans or credit cards.

ASIC allege the funds raised by Mr Patrick were not used to develop the properties, instead, they were used to pay interest payments to past and existing investors and to meet repayments on loans, as well as for personal use.

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

Mr Patrick will next appear in court on 16 September 2014.

Background

Mr Patrick faces a maximum of 10 years imprisonment on each of the deception and theft charges, and a maximum 2 years imprisonment if found guilty of carrying on a financial services business without an AFS licence.

 Author : Adam Sanders - Financial Planning - Bank Victims
Last modified onFriday, 18 July 2014 07:17

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