A Melbourne man who allegedly obtained mortgages from a financier totalling almost $1 million by submitting loan applications that failed to disclose the life tenancies attached to the mortgaged properties, has pleaded guilty to charges brought by the corporate regulator.
Gary O’Neill, the former director of Money for Living, pleaded guilty to two charges in relation to his involvement with the company and a second company, MFL Property Holdings, both of which are now in liquidation.
The Australian Securities and Investigations Commission (ASIC) alleged that O’Neill’s business method involved purchasing property at a discounted rate, as opposed to market rate, from the elderly and allowing them to remain in the property until they died.
A sentencing date is yet to be fixed.
A second man, Stephen O’Neill, who has entered a plea of not guilty, is to stand trial on four counts of dishonestly using his position as an officer of a corporation.
His trial is listed to commence on June 2, 2008.
