media release (14-166MR)

Melbourne man charged with 1 million dollar fraud

Published

Mr Barry John Patrick, 71, of Sunbury, Victoria, has appeared in the Melbourne Magistrates' Court on 15 charges following an ASIC investigation.

ASIC allege Mr Patrick illegally obtained more than $1 million from 14 investors between 2007 and 2010, purportedly to fund property development.

ASIC's investigation led to Mr Patrick being charged with:

  • 8 counts of obtaining property by deception
  • 5 counts of obtaining financial advantage by deception
  • 1 count of theft; or in the alternative a further count of obtain financial advantage by deception, and
  • 1 count of running a financial services business without an Australian financial services (AFS) licence.

ASIC allege that in many instances, Mr Patrick formed a company to purchase a property for development. To obtain funds for the property development projects he allegedly persuaded investors to refinance their homes and / or self-managed superannuation funds. Mr Patrick is also accused of persuading investors to take out additional loans or credit cards.

ASIC allege the funds raised by Mr Patrick were not used to develop the properties, instead, they were used to pay interest payments to past and existing investors and to meet repayments on loans, as well as for personal use.

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

Mr Patrick will next appear in court on 16 September 2014.

Background

Mr Patrick faces a maximum of 10 years imprisonment on each of the deception and theft charges, and a maximum 2 years imprisonment if found guilty of carrying on a financial services business without an AFS licence.

Editor's note 1:

The matter was adjourned for a further committal mention until 15 October 2014.

Editor's note 2:

At a mention on 15 October 2014, the matter was adjourned until 9 February 2015 for a contested committal in the Melbourne Magistrates’ Court.

Editor's note 3:

On 9 February 2015, the committal hearing was adjourned to 27 April 2015.

Editor's note 4:

On 29 April 2015, Mr Patrick was committed to stand trial on all charges. The trial is currently scheduled to commence on 9 May 2016. A pre-trial directions hearing has been set down for 9 March 2016.

 

Media enquiries: Contact ASIC Media Unit