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Wednesday 23 March 2011

11-55AD Chartwell director Graeme Hoy sentenced to jail for 13 years & nine months for one of Australia's largest ponzi schemes

Former Chartwell Enterprises Pty Ltd director, Graeme Hoy, has today been sentenced to jail for 13 years and nine months following an ASIC investigation into the collapse of the Geelong-based company. The investigation uncovered that the collapse of Chartwell, in April 2008, was a direct result of Mr Hoy operating one of Australia's largest ponzi schemes with investors owed in excess of $82 million.

Mr Hoy, of Melbourne, Victoria appeared in the Supreme Court of Victoria after pleading guilty in December 2010 to 44 deception charges totalling almost $22 million. Mr Hoy is required to serve a minimum term of nine years.

Mr Hoy, 58, was convicted of 34 charges of dishonestly obtaining $13.3 million by deception from investors, 10 charges of obtaining property by deception from investors that totalled $2.5 million, and one charge of dishonestly obtaining property in excess of $5.8 million by deception on behalf of Black Swan Holdings Pty Ltd from the Commonwealth Bank of Australia.

Mr Hoy was also convicted of one charge of dishonestly using his position as a director, one charge of carrying on a financial services business without a licence, and one charge of engaging in dishonest conduct in carrying on a financial services business by giving false information to investors about how their investments were performing.

In sentencing Mr Hoy today, Justice Terry Forrest commented that the fraud had caused incalculable damage for vulnerable people. Justice Forrest said Mr Hoy was responsible for fraud on a grand scale. Justice Forrest said he denounced Mr Hoy's conduct.

Regarding Mr Hoy's failure to hold an Australian financial services licence (AFSL), in sentencing Justice Forrest said the law was designed to protect the public from unscrupulous and unskilled financial advisors. He said Mr Hoy was both of those things.

The matter was 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.]

 

Last updated: 21/03/2011 12:00