The promoter of a scheme offering the early release of superannuation benefits has pleaded guilty to dishonestly inducing persons to deal in financial products in the Southport District Court.

Mark David’s appearance in court was the result of an Australian Securities and Investments Commission (ASIC) investigation, which alleged he persuaded the trustees of various superannuation funds to roll their members’ contributions into the Health Group Superannuation Fund on the premise that members could access their entitlements early.

Once the balances were rolled over into the fund promoted by David, the regulator alleged preserved super monies totalling $385,000 were distributed to members before they were eligible to receive them.

In addition, ASIC alleged the superannuation fund established by David was done purely to create a vehicle that could receive the rolled over contributions from other super funds and release them to members early than legally possible at a lower fee.

The matter is being prosecuted by the Commonwealth Director of Prosecutions and David is scheduled to appear in court for sentencing on November 21.

His court appearance comes after civil action was taken against him by ASIC in December 2003. At that time the corporate watchdog obtained Federal Court orders preventing David from any dealings with businesses facilitating early release, rollover, redemption or transfer of superannuation entitlements.