Banned former Westpac Bank Finance Manager, David St Pierre, will appear before Southport Magistrates Count next month on seven fraud charges, following an investigation by the Australian Securities and Investments Commission (ASIC).
The regulator permanently banned St Pierre from engaging in credit activities and providing financial services, in March 2014, after finding that between July 2008 and June 2010 he had:
- submitted loan applications when he knew they contained false information;
- failed to prepare an authority that accurately identified the payee of a cheque with the result that a customer cheque for $215,000 was paid into the personal trading account of a non-office holder of Capital Growth International Club Pty Ltd; and
- enabled and encouraged customers to borrow funds from Westpac and earned financial advantage in the form of cash bonuses on the loans, in addition to his base salary, despite knowing that they were elderly, a pensioner, a carer or suffering from a disability, and would not be able to repay the loan if the scheme failed.
“The 12 customers to whom the loan applications related were elderly or vulnerable and with limited financial means, yet in spite of this St Pierre encouraged them to borrow against their homes, some of which were unencumbered, to invest in the scheme which promised returns of 15 to 25 per cent per annum to investors,” ASIC said.
“The customers received monthly interest payments from the scheme after they invested in it, however the interest payments stopped shortly before a liquidator was appointed to CGIC and AAPD on 28 February 2011, which left the customers without sufficient income with which to repay their loans to Westpac.”
ASIC reported that the alleged fraud amounted to more than $2.5 million, with St Pierre facing a maximum penalty of up to 12 years jail for each charge.
