This article is from the Australian Property Journal archive
THE founder of Adelaide-based self-managed superannuation funds property company Charterhill has been sentenced to 10 years imprisonment, five years after the collapse of the ‘one stop shop’ company.
Charterhill director George Nowak has been sentenced to 10 years’ imprisonment for deception with a non-parole period of six years and three months.
Part way through his criminal trial, Nowak pleaded guilty to 17 counts of aggravated deception and one count of dishonest dealings with documents. The offences relate to Nowak’s conduct dealing with members of SMSFs that were undertaking property purchases offered by companies of which Nowak was a director, including EJ Property Developments Pty Ltd.
Approximately 140 SMSFs property investors were affected by the collapse with an estimated $6 million invested. The charges against Nowak concerned misappropriation of $1.2 million in SMSF monies. Nowak failed to hold the funds in a designated account and did not apply funds towards the intended property purchases in the period between December 2012 and December 2013.
In delivering the sentence, Judge Sophie David described the offending as of the utmost seriousness. She noted that the fraud had a significant impact on the victims’ lives and was perpetuated in order to fund a lavish lifestyle. Her honour emphasised the importance of deterrence in imposing sentences in these matters.
ASIC commissioner Danielle Press said Nowak deliberately misled his clients and used their funds for his own benefit.
“Nowak dishonestly and deliberately breached his clients’ trust. The Court’s sentence reflects the seriousness of this conduct and the impact it had on Nowak’s clients.” Press said.
