Astarra Asset Management's (AAM) former director Shawn Richard appeared in the Supreme Court of NSW on Friday to plead guilty to two charges of dishonest conduct while running a financial services business. He has also admitted to a third charge of making false statements in relation to financial products.
Richard previously pleaded guilty in Sydney's Downing Centre local court in December last year following an ASIC investigation that examined his conduct between 2005 and 2009.
According to a statement released Friday, The Commonwealth Director of Public Prosecutions (CDPP) applied to have Richard sentenced in the Supreme Court rather than the Local Court, "given the serious nature of the alleged offending".
It is alleged Richard dishonestly received undisclosed payments in his role as investment manager of the Astarra Strategic Fund (ASF) and Astarra Superannuation Plan (ASP). He also faced allegations that he knowingly made materially misleading statements about the value of investments made by the ASF.
Richard faces a maximum of 10 years in jail and will reappear for sentencing in the Supreme Court on 13 May.
"ASIC alleged, among other things, that Mr Richard was involved in causing the ASF and ASP to place investor monies in overseas hedge funds, in circumstances where Mr Richard would personally receive a significant portion of the monies for his own benefit and for the benefit of his company, AAM," ASIC said in December.
"The monies Richard placed in the overseas hedge funds had been raised by the responsible entity of ASF, Trio Capital Limited (Trio).
"ASIC alleged that Richard and AAM received in excess of $6.4 million in undisclosed payments."
ASIC also alleged that Richard made materially misleading statements about the value of ASF's investments in the overseas hedge funds, knowing that these statements were included in valuation statements provided to Trio and were likely to induce Trio to seek further investments in the hedge funds.
Richard has also been banned from managing corporations for life.
