Victorian man imprisoned for SMSF property fraud
A Victorian man has been convicted to six years and three months' imprisonment after he pleaded guilty to deception and carrying on a financial services business without a licence.
The County Court of Victoria sentenced Barry John Patrick after he pleaded guilty to:
- Three charges of obtaining property by deception;
- Two charges of obtaining a financial advantage by deception; and
- One charge of carrying on a financial services business without a licence.
Patrick, 73, picked investors to be directors of several companies set up to buy properties on the outskirts of Melbourne for development.
Those companies included Wrestway Property Development, Exclusive Property Consultants, Compendium Holdings, and Integrated Consolidated Holdings.
Patrick encouraged investors to refinance their homes and/or establish self-managed superannuation funds (SMSFs) and then invest their super in the property developments.
Between 2007 and 2010, Patrick illegally collected more than $600,000 from 14 retail investors to fund property developments due to the financial advice provided by him when he was not authorised to do so.
However, the funds were instead used to pay interest payments to past and existing investors and to meet repayments on loans, as well as his personal expenses, such as artwork and jewellery.
Patrick was charged with SMSF property fraud in 2014.
In sentencing him, His Honour Judge Gavan Meredith said Patrick had shown little remorse for his actions, and said his actions were "protracted, calculated and at times brazen", according to the Australian Securities and Investments Commission (ASIC).
In welcoming the ruling, ASIC Commissioner, Peter Kell, said: "The conduct of Mr Patrick exposed vulnerable members of the community to severe financial loss and hardship. ASIC will not hesitate to prosecute this type of deceptive and harmful conduct".
The Commonwealth Director of Public Prosecutions prosecuted the matter.
AUTHOR
Malavika Santhebennur
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