Melbourne accountant jailed over property development
A Melbourne accountant has been jailed for five years and eight months for operating 21 unregistered managed investment schemes relating to property development.
The sentence from Melbourne County Court comes after the Australian Securities and Investments Commission (ASIC) brought about the charges.
Mark Ronald Letten, the former director of LGH Holdings (in liquidation) and principal of the accounting firm Lettens Pty Ltd. had pled guilty to 27 criminal charges under the Corporations Act 2001.
He also admitted to misusing his position as a director by misusing investor funds totalling more than $533,000 and conducting a financial services business without an Australian financial services licence.
"Mr Letten acted in complete disregard for the law and with little concern for the interests of the investors," ASIC Chairman Greg Medcraft said.
"His jailing should send a strong message to company directors and scheme operators about the serious consequences of operating property investment schemes outside the legal requirements'.
According to ASIC, more than 1000 investors put more than $100 million in investment property schemes in Australia and New Zealand between 1998 and 2010.
Letten promoted the projects through many companies, including LGH Holdings.
Investors lost at least $67 million in the schemes, and the companies and unregistered schemes were shut down after numerous applications by ASIC in the Federal Court of Victoria in 2010.
Letten faced 37 criminal charges in December 2011 in relation to property holdings and development of real property in Australia and New Zealand.
He pled guilty to 27 charges in January this year. He must serve three years' jail before being eligible for release.
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