Property developer pleads guilty to ASIC charges

A property developer and mortgage broker has pleaded guilty to seven charges brought by the Australian Securities and Investments Commission (ASIC).

Samuel David Saunders of Orange in New South Wales, a former director of several companies, has been charged with three counts of obtaining money by false or misleading statements and four counts of fraudulent misappropriation of money collected, charges that carry maximum penalties of five years’ imprisonment.

The charges stem from Saunders’ time as director of Mortgage Finance Australia (now in liquidation) in 2004. ASIC alleged Saunders raised funds of approximately $460,000 from 14 investors for property investment.

ASIC also alleged that he “made misleading or deceptive statements” to six investors in relation to the risk involved in property development investment, and that he raised funds from eight investors “for the purposes of a property development” by Rafferty’s Group, another company for which Saunders was director, but failed to pay the investors’ capital to the company.

ASIC said Saunders assisted a number of investors to refinance mortgages, redraw equity on their properties and use it to fund investments he promoted. ASIC also said Saunders knew many of his investors through his local church.

Saunders is scheduled to appear in the NSW District Court in Orange for sentencing on November 2. The matter is being prosecuted by the Commonwealth Director of Public Prosecutions.