Two years jail for director
John Robert Houghton, a former director of Houghton & Associates, last week received a two year jail sentence after pleading guilty to 26 charges of fraudently missapropriating $1.3 million from wholesale superannuation investment pools.
The former superannuation investment consultant collected money from policy holders and invested this in wholesale pools with Mercantile Mutual and Prudential.
He then drew down the invested assets under the pooled contracts and used the money for personal use, including some unsuccessful investments such as the Dianne Copper Mine.
Following an audit request from the Bankstown District Sports Club in June last year regarding the assets in its superannuation fund, Houghton gave himself up to the New South Wales Commercial Crime Agency.
He was then investigated by the Australian Securities and Investments Commission (ASIC) , which drew up the charges against him.
According to the facts presented by the Crown, more than $2 million was "misapplied", but policy holders have since had their financial positions restored by Mercantile Mutual and Prudential.
Houghton will be eligible for parole on September 21, 2000.
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