Westpoint high flyer Neil Burnard appeared before Sydney's Downing Centre local court yesterday on 11 criminal charges.
The Sydney businessman is the first of Westpoint's directors to face jail on charges of swindling millions out of investors by telling them he was running an investment bank.
He was not required to enter a plea.
It was the first day of Burnard's committal hearing in front of magistrate Pat O'Shane.
ASIC is working with the Commonwealth Director of Public Prosecutions (CDPP) relating to Burnard's raising of funds for Westpoint.
The Western Australian-based property lending group collapsed in late 2005 owing $300 million to around 4000 investors.
ASIC laid four criminal charges and 14 civil charges against Burnard last year but the CDPP subsequently withdrew seven of the charges.
He is charged with offences under the New South Wales Crimes Act relating to obtaining money by false or misleading statements.
The regulator alleges Burnard lured investors to part with their money by saying he was the director of a company called Kebbel Investment Bank when no such entity existed.
The businessman raised about $140 million for Westpoint's property developments around the country through his company Palentia Pty Ltd, formerly known as Kebbel (NSW), which was Westpoint's main sales channel.
Last year ASIC obtained orders in the NSW Supreme Court restraining Burnard from fleeing the country and froze his assets.
He tried to flee the country last year but was refused entry into the United States.
The case continues today.
