Ex-rich lister's alleged fraud to pay rent
A former Gold Coast rich-lister allegedly swindled more than
half a million dollars from clients' superannuation funds through a series of
fake investments to pay bills and his wife.
Craig Kirrin Gore, 53, is accused of 12 counts of dishonesty
gaining $775,000 from four self-managed funds while working at Arion Financial
in 2013 and 2014.
Prosecutor Michael Copley QC says Gore promised investors
the money would earn more than eight per cent interest and be repaid to their
accounts within three months.
However, the court heard this never happened.
"The situation is the same from complainant to
complainant, ... the beneficiaries of the funds received telephone calls from
someone called Craig," he told the Brisbane District Court on Monday
during his opening address in the trial.
"(He) suggested to them they might like to make what he
called an 'investment' in debentures (with Westpac)."
Mr Copley said Gore, a failed property developer, made the
calls despite knowing Arion was in a "precarious" financial position
and little money in its bank accounts.
"(It) had a number of debts to pay and there was no
real prospect of (Arion), for whom he gained the funds, having the capacity to
repay the money," he said.
"And there was no real capacity of (Arion) paying the
interest component of eight-and-a-quarter per cent."
Mr Copley said evidence would be heard during the five-day
trial from Arion's financial controller, Mario Mey, that Gore made most of the
management decisions at the company and never directed for the money to be
invested once received from clients.
"The funds from these superannuation funds ... was
simply expensed as directed by Gore to cover the expenses of creditors (and)
sometimes to pay personal benefits for Gore and his wife, Marina," he
said.
Mr Copley said Mr Mey would also say Gore invented excuses
for staff to use when investors requested their money back.
Gore also allegedly used some of the money to pay his rent.
Witness Damian Wooster said he invested $250,000 with Gore
via four transactions.
"He would ring me and say you're not getting much with
(Macquarie Bank.) ... put some more in," he said.
Mr Wooster said he became concerned about the investment in
late 2014.
"I was not getting a lot of response in terms of emails
or telephone contact," he said.
"It seemed like a lot of stalling tactics or just no
response at all. I was starting to get a bit nervous.
"There was (also) quite a few excuses as to why things
had not happened."
Mr Wooster was eventually sent a statement showing he had
earned more than $22,000 interest.
But he never received that money and was eventually repaid
just $39,000 of his initial investment.
The trial continues.
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