A former Coffs Harbour mortgage broker has pleaded guilty to seven fraud charges relating to over $6 million in misappropriated funds.
An investigation by the Australian Securities and Investments Commission (ASIC) found that between November 1998 and December 2004, Dominic Cincotta defrauded nine former clients out of $6.49 million.
ASIC alleged that Cincotta was supposed to have arranged investments with Perpetual Trustees Australia on behalf of his clients in accounts such as a mortgage offset account, bricks and mortar fund or fixed mortgage investment account, earning interest between 6.75 per cent and 10.75 per cent per annum.
Contrary to this agreement, the funds were instead deposited into accounts controlled by Cincotta, including a St George Bank account and a Perpetual Investment Management cash management account.
Cincotta will reappear in Sydney’s District Court on October 26 for sentencing. He faces a maximum of five years for each count of dishonestly obtaining financial advantage and seven years for the fraudulent misappropriation charges.
