ASIC probe leads to imprisonment

A former company executive has been sentenced to a 12 month jail term, after pleading guilty to six charges laid by theAustralian Securities and Investments Commission(ASIC) following an investigation into a number of property development projects he promoted.

Former company director Stephen John Taylor was sentenced following an ASIC investigation which found that between April 1997 and June 1998 he invited clients of his business to invest in a number of property development projects on the Central Coast of NSW and in St Kilda, Victoria.

Taylor failed to lodge a prospectus with ASIC for any of the projects in question and the clients involved subsequently lost most of their money.

Some investors had mortgaged their homes to raise the funds needed to invest and Taylor assisted in arranging the finance.

ASIC says the harsh sentence reinforces that raising funds for investment must be done in accordance with the law.

Enforcement director Allen Turton says, “Mr Taylor illegally took over $535,000 from investors. He deprived people of their rights under the law by accepting money from them when there wasn’t a prospectus for the property development projects he promoted.”

Taylor was a director of Equity Direct Holdings and Cambridge Funds Management, and used both to promote the projects.

Taylor will not be released for at least six months, at which point he may be freed depending on his adherence to a good behaviour bond stipulated by the court.