Fraudster caught out
A Victorian man who allegedly carried on a financial services business without holding an Australian Financial Services Licence was yesterday sentenced to two years jail, fully suspended for two years, following an Australian Securities and Investments Commission (ASIC) investigation.
Anthony John Scott, 67, pleaded guilty in Melbourne’s County Court on October 25, 2007, to charges of dishonest conduct for his involvement in Homesafe Equities.
ASIC alleged that Scott played an integral role in the establishment and running of Homesafe, a company that issued builders warranty bonds in relation to 792 building projects throughout Victoria between June 2003 and March 2004. These projects had a potential value in excess of $100 million.
Homesafe claimed it was the manager of a ‘Captive Pool’ and that the insurance it provided, by way of bonds, was fully reinsured.
ASIC contended that, unknown to the builders who obtained the insurance certificates, there was no pool of money set aside to pay claims, and that full reinsurance was not in place in relation to any claims that might have been made.
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