Mortgage broker charged over $13.5 million fraud
The Australian Securities and Investments Commission (ASIC) has brought 23 charges of fraud against a former mortgage broker operating out of Coffs Harbour.
Dominic Cincotta has been committed to stand trial in the Downing Centre District Court to answer charges he dishonestly obtained a financial advantage and fraudulently misappropriated $13.5 million of investor funds.
Cincotta’s alleged fraudulent activities took place between November 1998 and December 2004.
After an investigation into Cincotta’s activities, the regulator alleged the former mortgage broker arranged investments for 12 of his clients that were supposed to be placed in several investment products being offered by Perpetual Trustees.
These products included a Mortgage Offset Account, a Bricks and Mortar Fund and an Investment Deposit account that would generate his clients a return of between 6.75 per cent and 12 per cent per annum.
However, rather than placing the investor’s funds into these vehicles, Cincotta deposited the monies into a cash management account taken out in his wife’s name and another separate bank account, both of which were under his control.
The matter is being handled by the Commonwealth Director of Prosecutions and Cincotta has been scheduled to appear in the Downing Centre District Court on March 9 of this year, having waived his right to a committal hearing.
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