Mortgage schemes hit again
The reputation of mortgage schemes and their promoters have taken another hit with a Melbourne businessman being sentenced to five years jail on four charges relating to the dishonest withdrawal of investors funds.
Stephen Mark O’Neill, a former company director from South Yarra, Melbourne, has been sentenced to five years jail, to be released after serving three and a half years and entered a $1,000 18-month good behaviour bond.
O’Neil has previously pleaded guilty to charges of theft, using false documents, and improperly using his position as a director to gain personal advantage.
During 1995 and 1998 O’Niell used his position to draw over $2.2 million in cheques from a company trust for his own benefit. Since then he has managed to repay the misappropriated funds to the amount of $1.1 million.
O’Niell also forged investors’ signatures on two mortgage discharge documents, which resulted in his investors losing $94,000 and stole a $26,150 bank cheque.
The Bailey O’Neill group operated a mortgage originator’s business in Bridge Road, Richard between 1993 and 1999. The group was placed into liquidation in March 1999, with investors losing approximately $1.5 million as a result of O’Neill’s actions.
Earlier this year mortgage schemes in Tasmania and Western Australia also came under fire with estimates that up to $20 million of investors money has been lost through solicitor mortgage schemes in Tasmania alone.
The growing problems in WA were believed to be behind the collapse of the Court government in the recent state election.
Recommended for you
EY has broken down which uses of artificial intelligence are presenting the most benefits for wealth managers as well as whether it will impact employee headcounts.
Advice licensee Sequoia Financial Group has promoted Sophie Chen as an executive director, following her work on the firm’s Asia Pacific strategy.
The former licensee of Anthony Del Vecchio, a Melbourne adviser sentenced for a $4.5 million theft, has seen its AFSL cancelled by ASIC after a payment by the Compensation Scheme of Last Resort.
The Australian Financial Complaints Authority has reported an 18 per cent increase in investment and advice complaints received in the financial year 2025, rebounding from the previous year’s 26 per cent dip.
