Former mortgage broker faces charges over Ponzi scheme
Former mortgage broker, Michael Samra, has appeared before Adelaide Magistrates Court on 12 charges of deception totalling $12 million.
The Australian Securities and Investments Commission (ASIC) has alleged that Samra operated a Ponzi scheme with promises of high returns on the investment of up to 48 per cent per annum.
ASIC claimed that Samra "induced investors to loan his company, ALC Company Pty Ltd, money on the basis that it would be on-lent to unnamed builders or property developers on a short-term basis".
"Approximately $66 million came into the ALC bank account over a seven month period with the majority of fund paid out to investors," ASIC reported.
The charges follow the collapse of Norwood-based ALC Group in 2009 owing liabilities of approximately $40 million.
Samra has been bailed to appear before the court on 28 July 2015.
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