This article is from the Australian Property Journal archive
GOLD Coast investment scheme promoter Anthony Keith Silver has been sentenced to eight and a half years in jail for scamming $1.815 million from five victims, telling them their money would be used to develop properties in Tasmania.
Silver was the shadow director of scheme companies Capital Growth International Club Pty Ltd and All About Property Developments Pty Ltd, which raised about $9 million from investors between 2008 and 2010.
Silver pleaded guilty to misappropriating $1.815 million from the scheme companies between April 2009 and June 2010 by transferring funds to his personal bank account, making payments to company employees and paying returns to other investors.
It follows Silver’s son, Bradley Silver, being sentenced to eight years’ imprisonment in 2019 after pleading guilty to dishonesty offences relating to the scheme companies totalling over $4.7 million.
Many of the investors were pensioners and were recruited by cold-calling or word of mouth. Investors were told that their funds would be used to develop property in Tasmania or be pooled and invested in bank term deposits, and would receive returns of 15 to 20% per annum on their investments.
Some investors were convinced to borrow against their homes to invest with the scheme companies.
In delivering the Anthony Silver’s sentence, Judge Vicki Loury KC remarked on the significant impact of Silver’s fraud on the victims, and the financial and psychological cost to them.
The Courier Mail reported defence barrister Russell Pearce said Silver had been diagnosed with a delusional disorder.
“This was not one of those classic Ponzi schemes … he believed there was a genuine investment opportunity to develop residential dwellings on land north of Hobart,” he said.
“It has been a bizarre matter from our point of view because this man is either inherently stupid, totally corrupt, or as we thought there is something wrong with him – he is delusional”.
“There is no hidden pot of gold here, or hidden spoils, this man is destitute. His (legal) representation at the moment is being funded by extended family. He lost his life savings in this scheme as well.”
The Court set Silver a non-parole period of two and a half years, as it did Bradley Silver.
On 9 February 2017, former Westpac home finance manager David St Pierre was sentenced to three years imprisonment after pleading guilty to dishonest use of his position concerning his role in submitting false loan applications to obtain over $2.5 million for Westpac customers to invest in the scheme companies. On 12 March 2014, ASIC permanently banned Mr St Pierre from engaging in credit activities and providing financial services.
In October 2014, Westpac remediated investors in the scheme companies who had contact with Mr St Pierre before investing.
