Former Chartwell Enterprises Pty Ltd (Chartwell) director, Graeme Hoy, has pleaded guilty to 47 charges following an ASIC investigation into the collapse of the  Geelong-based company.

Chartwell collapsed in April 2008, owing investors more than $60 million.

Mr Hoy, of Melbourne, Victoria, pleaded guilty to deception charges totalling in excess of $21.7 million in the Supreme Court of Victoria. Specific charge details are as follows:

Obtaining a financial advantage by deception (34 counts)

These charges relate to Mr Hoy dishonestly obtaining over $13.3 million from investors, in part on the basis of false representations made to them as to how their money would be used. Mr Hoy also pleaded guilty to obtaining in excess of $5.8 million on behalf of Black Swan Holdings Pty Ltd from the Commonwealth Bank of Australia based on false financial statements provided by Mr Hoy, also a director of Black Swan Holdings.

Obtaining property by deception (10 Counts)

These charges relate to Mr Hoy obtaining over $2.5 million from investors, in part, on the basis of false representations made to investors as to how their money would be used.

Dishonest use of position as a director (1 count)

This charge relates to Mr Hoy dishonestly using his position as a director of Chartwell to gain an advantage for Black Swan Holdings by executing a guarantee on behalf of Chartwell regarding an equipment loan between CBFC Ltd and Black Swan Holdings to purchase a yacht valued at approximately $6.9 million.

Carrying on a financial services business without a licence (1 count)

This charge relates to Mr Hoy aiding or abetting Chartwell in the carrying of a financial services business without an Australian financial services licence as required under the Corporations Act.

Engaging in dishonest conduct in carrying on a financial services business (1 count)

This charge relates to Mr Hoy aiding or abetting Chartwell to engage in dishonest conduct by providing false information to investors in relation to:

1. The reasons for delay in payment of interest payments
2. The security of their investments
3. The financial status of Chartwell and its prospects for future success.

My Hoy was bailed to appear in the Supreme Court sitting at Geelong on 25 January 2011 for further mention.

The matter is being prosecuted by the Commonwealth Director of Public Prosecutions.

Background

[This media release was amended on 12 August 2019 in accordance with ASIC policy - see INFO 152 Public comment on ASIC's regulatory activities.]