A mortgage broker has appeared in court after ASIC alleged he operated a Ponzi scheme.
Michael Samra faced Adelaide Magistrates Court last Friday charged with 12 counts of deception, totalling $12 million, according to ASIC.
The regulator alleges Mr Samra operated a Ponzi scheme with promises of high returns on the investment, some up to 30-48 per cent a year.
It also alleges Mr Samra induced investors to lend his company, ALC Group, money on the basis that it would be on-lent to unnamed builders or property developers on a short-term basis.
About $66 million came into the ALC bank account over a seven-month period, with the majority of funds paid out to investors, according to ASIC.
The charges follow the collapse of Norwood-based ALC Group in 2009 owing liabilities of approximately $40 million, ASIC said.
Mr Samra, who was not required to enter a plea, was released on bail and the matter will return to court on 28 July.
The Commonwealth Director of Public Prosecutions is prosecuting the matter.
Want to see more stories from trusted news sources?
Make The Adviser a preferred news source on Google.
Click here to add The Adviser as a preferred news source.
