Unregistered investment scheme operator charged with fraud
The operator of an unregistered managed investment scheme involving SMSF investors has been charged with 50 counts of fraud.
In a public update, ASIC announced that Chris Marco of Mount Hawthorn, Western Australia has been charged with 50 counts of fraud under Section 409 of the Criminal Code.
The criminal charges follow orders from the Federal Court in December 2020 to wind-up an unregistered managed investment scheme operated by Chris Macro.
The Court also ordered that Mr Marco be permanently restrained from carrying on a financial services business without an Australian Financial Services (AFS) licence or operating an unregistered managed investment scheme.
Following an ASIC investigation, it is alleged that between July 2013 and October 2018, Mr Marco defrauded $36.5 million from nine investors. It is also alleged, of the $36.5 million, one investor was defrauded $10 million by investing with Mr Marco.
SMSF Adviser reported in September 2020 that Mr Marco had been ordered to pay damages to the trustee of an SMSF after the SMSF initiated proceedings against him and AMS Holdings for unpaid returns and money held on trust.
Mr Marco operated as a private investor and traded in bank instruments. He invested in private placement programs (PPP) which required capital as proof of funds in order to trigger a line of credit enabling him to facilitate arbitrage transactions involving bank instruments in the US and Europe.
He began obtaining money from outside investors to increase his proof of funds to the required levels for trading.
Another SMSF, the Marks Auto Superannuation Fund, also took Mr Marco to court in early 2020 over his failure to repay trust money.
Mr Marco is due to appear at the Perth Magistrates Court on 22 July 2022.
The maximum penalty for each offence of fraud under the Criminal Code WA is seven years imprisonment, or 10 years if the person deceived is 60 years or older.
This matter is being prosecuted by the Commonwealth Director of Public Prosecutions.
Miranda Brownlee
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.
