A Hobart man who defrauded investors out of close to $2 million has been sentenced to prison after an ASIC investigation.
A former ‘Gold Coast property scheme promoter’, Anthony Keith Silver, also known as Tony Silver was today sentenced to eight years and six months imprisonment for fraud totalling $1.815 million.
The sentence follows an investigation by the Australian Securities and Investments Commission (ASIC) into Silver’s involvement as the shadow director of Capital Growth International Club Pty Ltd and All About Property Developments Pty Ltd between 2008 and 2010.
During this time, the scheme companies raised approximately $9 million from investors.
Many of the investors, including pensioners, were approached to invest in the scheme companies through cold-call telemarketing or word of mouth.
Investigators said Silver ‘misappropriated funds’ from the scheme companies between April 2009 and June 2010 by transferring $1.815 million to his personal bank account, paying returns to other investors and making payments to company employees.
“Investors were told that their funds would be used to develop property in Tasmania or be pooled and invested in bank term deposits,” the ASIC said.
“Investors were also told they would receive returns of 15-20 per cent per annum on their investments. Some investors were convinced to borrow against their homes to invest with the scheme companies.”
Judge Vicki Loury KC, who delivered the sentence, said Silver’s fraud ‘significantly impacted’ the victims, noting the financial and psychological cost to them.
The Court set a non-parole period of two and a half years for Silver.
The sentence is the second in as many years for the Silver family, with Bradley Silver, Anthony Silver’s son, sentenced to eight years imprisonment in 2019 after pleading guilty to dishonesty offences relating to the scheme companies totalling over $4.7 million.
