Astarra sentence an 'effective deterrent'
The two and a half year jail sentence handed down to Shawn Richard - the mastermind behind the Trio Capital fraud - is an "effective deterrent", according to Australian Securities and Investments Commission (ASIC) chairman Greg Medcraft.
Former Astarra Asset Management investment manager Shawn Richard was on Friday sentenced to a total of 3 years and 9 months imprisonment with a minimum term of 2 years and 6 months for his role in the Trio Capital fraud.
Medcraft welcomed the sentence as an effective deterrent against dishonest conduct by those in positions of trust.
"Mr Richard was a critical gatekeeper in the financial services system, responsible for making decisions in the interests of investors. His dishonesty resulted in significant detriment to those investors," Medcraft said.
"ASIC has recently increased its focus on the responsibilities of gatekeepers and, as this case demonstrates, will ensure that those who dishonestly fail in those responsibilities are brought to account in criminal proceedings," he said.
Richard was potentially facing a sentence of up to 10 years for his part in the largest theft of superannuation funds in Australian history, which saw Australian investors stripped of more than $100 million.
In sentencing, NSW Supreme Court Justice Garling said: "Mr Richard is guilty of serious crimes of a high order. They were carefully considered and planned, they were well concealed, they continued over a period of nearly 4 years and they led to significant financial losses in excess of $26.6 million."
Richard has previously pleaded guilty to two charges of dishonest conduct related to making false statements and taking more than $6.4 million in undisclosed payments, while he personally received around $1.3 million in secret payments.
Last year, Richard entered into an enforceable undertaking with ASIC which saw him banned for life from the Australian financial services industry.
Following an investigation into Astarra Asset Management and its responsible entity, Trio Capital, ASIC alleged Richard was involved in causing Astarra funds (the Astarra Superannuation Fund and the Astarra Superannuation Plan) to place investor money into overseas hedge funds, and that he and Astarra received in excess of $6.4 million in undisclosed payments for making these investments.
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