Property developer on trial for fraud
A Melbourne property developer will face trial on 136 criminal charges, including getting $2.6 million in investor funds by deception, the Australian Securities and Investments Commission (ASIC) said.
Anthony Nicholls, 61, from Mitcham, is charged with 113 counts of breaching his duties as a director of Zantholls International Pty Ltd and Peton Properties Pty Ltd, three counts of making false and misleading statements, 19 counts of gaining a financial advantage by deception and one count of obtaining property by deception.
His misconduct occurred while he was a director between 2004 and 2006.
Around 20 people who invested $2.68 million with the companies have suffered losses. The money was to be invested in property developments in Ballarat but ASIC said it was not possible for the developments to occur in the timeframe promised to investors.
ASIC also said the money was squandered.
ASIC accused Nicholls of dishonestly giving the go-ahead for the withdrawal of $1,806,000 in investor money from a Peton Properties bank account and a solicitors’ trust account for his own benefit and the benefit of his co-director, Peter Scully.
Nicholls has pleaded not guilty to the charges.
After a week-long committal hearing in Melbourne Magistrates Court, Nicholls will stand trial in the Victorian County Court on 11 May 2015.
The trial is expected to run for three months.
Nicholls could face five years jail or a $220,000 fine for his misconduct as a director. He could face a maximum penalty of 10 years jail or a $495,000 fine for making false and misleading statements.
Peton Properties went into liquidation in 2007, owing creditors more than $4 million.
AUTHOR
Malavika Santhebennur
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