A South Australian company director has been charged with illegal fundraising after an unregistered managed investment scheme collapsed leaving 40 investors almost $25 million out of pocket.
ASIC has brought 160 charges against Seabay Investments run by Carmine Misale.
The watchdog alleges that between June 2003 and November 2004 Seabay issued debentures on 80 loans totalling $8.95 million in breach of the Corporations Act.
The money loaned to Seabay was then on-lent to an unregistered managed investment scheme operated by Adelaide man Guiseppe Antonio Mercorella.
Following the collapse of the Mercorella scheme, Sebay was left owing almost $25 million to 40 investors.
ASIC had sought an order for Seabay to be wound up to ensure creditors received a fair distribution of company assets. However, an agreement was reached where the investors forgave the debt owing to them and Seabay promised to pay 20 per cent of their loans back by March 1, 2009.
As part of the Federal Court action, ASIC required Seabay sole director Misale to personally guarantee the payments to investors.
The matter was adjourned until January 12, 2007.
Also following ASIC investigations, Mark David of New Farm in Queensland has pleaded guilty to dishonestly persuading clients to switch super.
David persuaded super fund trustees to rollover super benefits to the Health Group Superannuation Fund. David failed to disclose all the facts.
About $385,000 was released from the funds before members were eligible to receive them.
In December 2005 David's co-accused, Arkady Sittczenko, was sentenced to 18 months imprisonment.
