A former mortgage broker has been sentenced to 8 years and 9 months imprisonment for deceptions totalling $1.902 million.
Adelaide District Court today, 10 August, sentenced Michael Samra, a former broker and owner of Norwood-based company ALC Group Pty Ltd, to 8 years and 9 months imprisonment for deceiving investors.
According to the Australian Securities & Investments Commission (ASIC), between January 2009 and 31 July 2009, Samra (through ALC Group) deceived investors to lend money to be on-lent to builders and property developers on a short-term basis.
However, the money was not on-lent and dishonestly benefited the ALC Group — which collapsed in 2009 with liabilities of approximately $40 million — or other parties.
Twelve charges were laid in 2015 for 12 counts of deception totalling more than $12 million.
In April, Samra pleaded guilty to six charges of deception totalling $1.902 million. The remaining six charges have been entered to the court as discontinued.
The former broker will be required to serve a minimum of 4 years and 6 months of his 8-year sentence before becoming eligible for parole.
Samra has 21 days to appeal his sentence.
ASIC deputy chairman Peter Kell said: "This is a significant penalty reflecting the seriousness of the criminal conduct. ASIC will continue to investigate where investors are deceived and refer criminal conduct to the Commonwealth Director of Public Prosecutions for prosecution."