Former director of Progressive Investment Securities Nellie Enares has been convicted on charges relating to a margin lending scam and sentenced to 400 hours of community service.
The charges were brought after an ASIC investigation into the Capital Investment Group and Progressive Investment Securities. The firms were accused of providing illegal financial services to investors who were enticed into investing in securities known as ORB 1, ORB 2 and OMIP 15 - 7 through the use of Macquarie Bank margin lending.
The investors were required to enter into agreements with Macquarie Bank for up to $300,000 in margin loans on each product. Many of these loans are now in default.
Enares was charged with making false statements during the examination and denying that her handwriting appeared on a number of documents, including loan and product applications that had been submitted to Macquarie Bank for approval.
"Lying to ASIC during a formal examination is no light matter and today's outcome shows that such behaviour will be pursued, and is regarded seriously by the courts," ASIC's executive director of enforcement Jan Redfern said.
Enares is one of four individuals charged in relation to this investigation.
The other three charged are Tunde Doja, Mohammad Zareei and Manouchehr (Mark) Tivay. Their cases will be heard in the District Court on April 30.
