On 16 June 2022, Brent Lindsay Smith and Fue Hiedi Mano of St Albans, Victoria, and Mahmoud Khodr of Melbourne, Victoria, appeared in the Melbourne Magistrates Court charged with criminal directors’ duties breaches relating to ‘interest-free’ mortgages offered by Remedy Housing Pty Ltd.

It is alleged that between November 2019 and February 2021, the directors and officers of Remedy Housing, Mr Smith, Mr Khodr and Ms Mano, dishonestly represented to consumers that:

• Remedy Housing would provide a consumer with an ‘interest-free mortgage’ and title to a home within 12 months of payment of a deposit of at least $10,000 ;
• if Remedy Housing could not provide a home to the consumer within 12 months, the deposit would be refunded in full;
• Remedy Housing was financed by overseas investors, including financing from former Samoan international rugby union player Trevor Leota. (Mr Leota has not been charged in these proceedings.)

It is alleged that Remedy Housing had no investors or funders and that the funds acquired by Remedy Housing were used to operate and promote the scheme or were transferred to the personal accounts of the company directors and officers. 

Mr Smith is charged with five offences of dishonestly using his position as a director of Remedy Housing. .

Mr Khodr is charged with one offence of dishonestly using his position as a director and officer of Remedy Housing.

Mr Smith and Mr Khodr are each jointly charged with dishonestly using their position.

Ms Mano is charged with twelve offences of dishonestly using her position as an officer of Remedy Housing.

The matter is being prosecuted by the CDPP after an investigation and referral by ASIC.

Background

The maximum penalty for each offence of dishonest use of position as a director or officer is up to 15 years imprisonment and/or a fine of up to $765,000.

Remedy Housing was operated by Mr Smith and Mr Khodr as director and secretary respectively, with Ms Mano and Mr Leota also involved in the business, including by promoting to consumers, primarily from Pacific Islander communities in Australia and New Zealand.

On 17 June 2021, ASIC moved to shut down Remedy Housing and successfully obtained interim orders and injunctions from the Federal Court against Mr Smith, Mr Khodr, Mr Leota and Remedy Housing (21-149MR).

Moneysmart.gov.au has information to help consumers with property investments and home loans.

Editor's note 1:

The matter has been listed for a committal mention hearing in the Magistrates’ Court of Victoria at Melbourne on 22 September 2022.

Editor’s note 2:

On 15 September 2022, the committal mention hearing was adjourned to 13 October 2022.

Editor’s note 3:

At a committal mention on 13 October 2022, the matter was adjourned for a further committal mention on 6 December 2022. The matter has additionally been listed for a contested committal hearing to commence on 9 February 2023, for two days, in respect of Khodr and Mano.

Editor’s note 4:

At a committal mention on 6 December 2022, the matter in respect of Smith was adjourned for a further committal mention on 23 January 2023.

Editor’s note 5:

At a committal mention on 23 January 2023, the matter in respect of Smith was listed for the contested committal hearing to commence on 9 February 2023, for two days, with the matters of Khodr and Mano.

Editor's note 6:

At a special mention on 3 February 2023, the committal hearing was adjourned to commence on 25 May 2023.

Editor’s note 7:

Following a contested committal hearing in the Melbourne Magistrates' Court that concluded on 26 May 2023, Smith, Khodr and Mano were committed to stand trial on all charges against them. A directions hearing in the County Court is scheduled for 23 June 2023.

Editor’s note 8:

Following a directions hearing in the County Court on 23 June 2023, the matters of Smith, Khodr and Mano were adjourned to 28 July 2023 for further directions.

Editor's note 9:

Following a directions hearing in the County Court on 28 July 2023, the matters of Smith, Khodr and Mano were adjourned to 20 October 2023 for further directions.

Editor's note 10:

The directions hearing in the County Court scheduled for 20 October 2023 was adjourned to 28 November 2023 for a case conference hearing.

Editor’s note 11:

At the case conference hearing in the County Court on 28 November 2023, the matters were adjourned to 31 January 2024 for further directions.

Editor's note 12:

At a directions hearing in the County Court on 31 January 2024, the matters were adjourned to 1 March 2024 for further directions. The matters were additionally listed for section 198B examinations to be held on 15 and 16 May 2024.

Editor’s note 13:

At a directions hearing in the County Court on 1 March 2024, a sentence indication hearing with respect to Ms Mano was scheduled for 26 April 2024. Additionally, the section 198B examinations were rescheduled to 16 and 20 May 2024 and the matter of Mr Khodr was adjourned to 3 June 2024 for further directions.