Mezzanine financier charged with fraud
The Australian Securities and Investments Commission (ASIC) has brought 30 criminal charges against Robert Orehek regarding the misappropriation of mezzanine finance funds raised in connection with a number of Sydney property developments.
The Downing Centre Local Court committed Orehek to stand trial on three counts of fraudulent misappropriation that netted him $190,000, and 27 counts of illegally issuing $2.6 million of securities.
The regulator alleges Orehek raised mezzanine finance through a group of his own private companies to fund property developments in several of Sydney’s suburbs including Balmoral, Northbridge, Wahroonga, Mosman, Rose Bay, Fairlight, Cherrybrook and Glenhaven.
Funds were raised via deeds of loan that were issued to investors, many of who belonged to the Hillsong Church in Castle Hill.
Orehek’s group of companies has now been placed in liquidation with none of the developments being completed, resulting in the majority of investors losing their money.
The conditions of Orehek’s bail dictate that he surrender his passport, continue to reside at his current address and not venture within the vicinity of an overseas departure point.
He will be arraigned in the District Court of NSW on October 13, 2006.
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