Former Mortgage Finance Australia director pleads not guilty to ASIC charges
A former property developer and mortgage broker has pleaded not guilty to charges of obtaining investors’ funds through using misleading statements and then misappropriating those funds.
Samuel David Saunders, from Orange in New South Wales, is pleading not guilty to allegations that could lead to jail time.
The seven charges brought by ASIC relate to Saunders’ fundraising activities while he was a director of Mortgage Finance Australia between July and September 2004.
ASIC alleged that Saunders raised $460,000 from 14 investors for investments in property developments. He made misleading or deceptive statements to six investors about the risk associated with investing in a property development, ASIC said. Furthermore, ASIC alleged that Saunders raised funds from eight investors for investment in a property development by Rafferty’s, but then didn’t pay the investors’ capital to the company.
Saunders also assisted a number of investors to refinance their mortgages, redraw the equity on their property, and use the equity to fund the investments he promoted, according to the ASIC statement.
ASIC said many of the investors were known to Saunders through his local church.
Saunders is also the former director of a number of other companies, including Australian Synergies Group Pty Ltd, Orion Pacific Developments Pty Ltd and the Rafferty’s Group Pty Ltd.
Mortgage Finance Australia Pty Ltd is in liquidation, according to ASIC.
Recommended for you
As advisers risk losing two-thirds of FUA during the $3.5 trillion wealth transfer, two co-founders underscore why fostering trust with the next generation is vital to retaining intergenerational wealth.
As advisers seek greater insights into FSCP determinations, what are the various options considered by the panel and can a decision be appealed?
Amid the current financial adviser shortage, advice firm Link Wealth is looking to expand its financial literacy program for high school students across the country.
TAL Risk Academy has updated its range of ethics courses to help financial advisers meet their CPD requirements following adviser feedback, including interpreting FSCP determinations.
