A third individual, David Sipina, has been charged with criminal offences relating to alleged misconduct at the Courtenay House group of companies.
Sipina, of Croydon NSW, appeared in the Downing Centre Local Court, facing one charge of carrying on a financial services business without a licence, one charge of dealing in the proceeds of crime worth $1 million or more, and one charge of engaging in dishonest conduct in relation to a financial product or service.
This would follow former Courtenay House director Tony Iervasi pleading guilty in November 2022 to conducting a $180 million Ponzi scheme. It involved around 585 investors based on representations that their funds would be traded in the Forex and Futures markets when in fact only a small proportion of funds were traded.
Additionally, former Courtenay House contractor Athan Papoulias pled guilty in January 2023 to one charge of carrying on a financial services business, reckless about the fact that it did not have the required licence and one charge of dealing in the proceeds of crime worth $100,000 or more, reckless to it being the proceeds of crime.
Sipina was engaged by Courtenay House Capital Trading Group to promote the Courtenay House business. It was not alleged that he or Papoulias were aware of the Ponzi scheme, though their conduct facilitated the continuation of the scheme and that they benefitted from it.
With regards to Sipina, it was alleged that between 24 June 2015 and 21 April 2017:
- he carried on (with others) an unlicensed financial services business;
- dealt with money or other property which was, and he believed to be, the proceeds of crime, in the form of commissions he received for promoting investments in Courtenay House despite it being unlicensed;
- obtained personal information on false pretences from investors and used that information to mislead representatives of the responsible entity for the Courtenay House Capital Investment Fund.
For engaging in dishonest conduct, Sipina could face a maximum penalty of 10 years’ imprisonment, a fine of $810,000, or both.
For operating without an AFS license, he could face a maximum penalty of two years’ imprisonment, a fine of $34,000, or both.
For dealing with the proceeds of crime, believing it to be proceeds of crime, the maximum penalty would be 25 years imprisonment, a fine of $204,000 or both.
This matter was being prosecuted by the Commonwealth Director of Public Prosecutions after an investigation and referral by the Australian Securities and Investments Commission (ASIC).
It was listed for mention in the Downing Centre Local Court in Sydney on 18 April 2023.
