A former Queensland property developer has been found guilty of fraud in obtaining more than $300,000 in funds from SMSF investors.
Following a five-day judge-alone trial in the Brisbane District Court, Craig Kirrin Gore was found guilty of six counts of fraud involving amounts obtained from SMSF investors totalling $345,000.
Gore was first arrested on 14 April 2017 following an investigation by the Australian Securities and Investments Commission (ASIC) and soon after appeared in court on 12 counts of fraud relating to obtaining funds totalling $800,000 from five SMSF investors during 2013 and 2014.
Though his trial proceeded on 12 counts of fraud, he was subsequently found not guilty on five counts, with a sixth count being dismissed because the court could not be satisfied the fraudulent activity in that instance had taken place within the Queensland jurisdiction.
“ASIC’s case focused on Gore obtaining funds from SMSF investors through his role at Arion Financial Pty Ltd. Investors were presented with information that they could invest in debentures, with various promises that included a guaranteed return, high returns and that the funds could be returned after a short-term period of investment,” ASIC said in an update on its website.
“The court found that in relation to four SMSF clients, Gore was aware of the poor financial state of Arion at the time representations were made to them and that there was no real prospect of Arion repaying the invested amounts or the interest.”
Gore was remanded in custody and is due to be sentenced on 26 November. The matter was prosecuted by the Commonwealth Director of Public Prosecutions.
Gore also faces three charges of acting in the management of three corporations – MOGS, Sleipner Financial and Arion Financial – while disqualified from doing so.
“Those matters did not form part of the fraud trial and will return to the Magistrates Court for mention on 13 November 2020,” ASIC noted.
