This article is from the Australian Property Journal archive
GOLD Coast property developer Bradley Silver has been sentenced to eight years’ imprisonment for dishonesty offences totalling over $4.7 million, following an ASIC investigation.
According to ASIC, between July 2008 and July 2010, Silver dishonestly induced Westpac to deliver property in the amount of $2,763,000 to Westpac customers for investing in Capital Growth International Club Pty Ltd (CGIC) and All About Property Pty Ltd (AAPD).
ASIC’s investigation, further revealed that between April 2009 and May 2010, Silver, while a director of CGIC and associated with AAPD, dishonestly used his position with the intention of causing a detriment in the amount of $2,015,000.
In February 2011, the scheme companies were placed into liquidation owing investors approximately $9 million. Many of the investors were pensioners and were approached by telemarketing or word of mouth.
ASIC commissioner Sean Hughes said Silver deliberately targeted the elderly, promised investors up to 20% returns and convinced investors to borrow against their homes, which in many cases, was their only financial asset. ASIC will continue to pursue such deliberate and harmful conduct,’ said ASIC Commissioner Sean Hughes.
Investors were convinced to borrow against their homes and were told that their money would be used to develop property in Tasmania. Instead, the money paid by investors was used to pay back interest owed to other investors, payments to employees, cash withdrawals and transfers to personal bank accounts.
Judge Deborah Richards described Silver as running a sophisticated scheme involving “calculated dishonesty…The ripple effect of your actions has been enormous.”
She also condemned his “callous manipulation and deception.”
Retired NSW Nationals Senator John Williams raised concerns about reverse mortgages with Westpac, highlighting the behaviour of Bradley Silver and David St Pierre, during a Senate enquiry in 2012.
Williams responded to the sentencing: “I’m glad that some of the victims of Bradley Silver got to see justice done today. It’s been a long road, but it was clear from the start that Silver and his acquaintances were taking advantage of the elderly. In my opinion, it was an investment scheme destined to fail.”
The court set Silver a non-parole period of two and half years.
