Gold Coast director jailed for defrauding investors
A Gold Coast director has been sentenced to more than seven years in jail for defrauding investors of $2 million, according to the announcement released by the Australian Securities and Investments Commission (ASIC).
ASIC alleged that former director of Water at Wooyung Unit Trust Robert Dale induced four investors to pay $2 million in total to acquire units in his trust for the development of property at Wooyung.
The investors, who paid $500,000 each, told the Southport District Court that they never received the promised units, while ASIC alleged Dale used significant proportions of the investor funds for private purposes.
Following a four-week trial, Dale was found guilty of six charges of dishonestly gaining benefit and one charge of dishonestly applying property belonging to another.
He will serve a minimum of three years and two months, being eligible for parole on 15 January 2015. He will also be disqualified from being involved in the management of a corporation for five years.
"Building and enhancing confidence among investors is a key priority for ASIC; this includes taking action against directors who fail to fulfil their responsibilities," said ASIC Commissioner Peter Kell, who welcomed the sentence.
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