Following an ASIC investigation, Barry Patrick has pleaded guilty to six charges in the County Court of Victoria.
In an announcement this morning, ASIC said the charges relate to Mr Patrick’s conduct in carrying on a financial services business without a licence, and obtaining property and a financial advantage by deception.
According to ASIC, Mr Patrick nominated investors to be directors of a number of companies formed to purchase properties at Pakenham, Lilydale, Epping and Garfield for development.
Those companies were Wrestway Property Development Pty Ltd, Exclusive Property Consultants Pty Ltd, Compendium Holdings Pty Ltd and Integrated Consolidated Holdings Pty Ltd, ASIC said.
“To obtain funds for the property development projects, he persuaded investors to refinance their homes and/or establish SMSFs and then invest their SMSF in the developments,” ASIC said.
“Between 2007 and 2010, Mr Patrick illegally obtained more than $600,000 from 14 investors to fund the property developments.
“The funds raised by Mr Patrick were not used to develop the properties but were instead used to pay interest payments to past and existing investors and to meet repayments on loans, as well as for personal use.”
Overall, Mr Patrick pleaded guilty to three charges of obtaining property by deception; two charges of obtaining a financial advantage by deception, and one charge of carrying on a financial services business without a licence.
ASIC stated five additional charges were withdrawn by the prosecution as a result of the guilty plea.
Mr Patrick was conditionally bailed to appear before the County Court of Victoria for a plea hearing on 7 July 2016, and the matter is being prosecuted by the Commonwealth Director of Public Prosecutions.
Good work ASIC….it sends a message to property spruikers. But why did it take six years?