Ponzi Scheme Involvement

DS from Croydon NSW has been convicted of criminal charges following his involvement in the Courtenay House Ponzi Scheme.  DS engaged with others, in a financial services business without proper licensing (breaching section 911A of the Corporations Act) and Dealing with proceeds of crime exceeding $1 million under section 400.3(1) of the Criminal Code.

The Ponzi Scheme promised returns to investors through trades in Forex and Futures markets.  No such returns eventuated, instead approximately 585 victims emerged with the size of the scheme exceeding $180 million. 

A classic Ponzi Scheme usually involved the incoming investor funds being utilized to reimburse earlier investors, and that was the case here.  For his part, DS admitted to running an unlicensed financial services business where he was responsible for referring new investors and marketing the business and he also pleaded guilty to handling money that he believed to be proceeds of crime, namely, commissions he earned for promoting investments in Courtenay House despite its lack of licensing.

DS is the third individual to admit guilt to criminal charges linked to Courtenay House.  Last year another person, contractor AP received a two-year sentence, to be served through an intensive corrections order, for his involvement in the unlicensed financial services business (23-118MR); and another person, TL, also admitted guilt to charges relating to operating the Ponzi scheme.

Read the full ASIC media release here.