ISCOVER
Officials of an unlicensed mortgage lender Remedy Housing have been convicted of dishonesty offences for their role in promoting interest-free mortgages.
Remedy Housing officials Brent Smith, Mahmoud Khodr, and Fue Mano have been convicted of dishonesty offences for their role in promoting “interest-free mortgages” offered by Remedy Housing.
According to ASIC, Remedy Housing would provide consumers with an ‘interest-free mortgage’ and title to a home within 12 months, upon payment of a deposit of at least $10,000.
The company – which did not hold a relevant financial services or credit licence – claimed that if Remedy Housing could not provide an ‘interest-free mortgage’ to the consumer within 12 months, the deposit would be refunded in full.
The company positioned Remedy Housing as being financed by overseas investors, including financing from former Samoan international rugby union player Trevor Leota.
However, ASIC found that Remedy Housing had no investors or funders, never provided any mortgages, and the funds it acquired from customers’ deposits were used to operate and promote the scheme and transferred to the personal accounts of Smith and Khodr.
Between 7 November 2019 and 10 March 2021, it was found that around 123 potential customers deposited a total of almost $1.5 million into a bank account in Remedy Housing’s name.
ASIC moved to shut down Remedy Housing and successfully obtained interim orders and injunctions from the Federal Court against several individuals and Remedy Housing in 2021.
Who did what?
Mano was an officer of the company who, together with another person, was involved in promoting the business to consumers, primarily in the Pacific Islander communities in Australia and New Zealand.
Following a four-week trial in the County Court of Victoria, brought by the Australian Securities and Investments Commission (ASIC), a jury found that between 2019 and 2021, the three individuals were guilty of multiple counts of dishonesty:
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Smith of St Albans, Victoria, was found guilty of seven counts of dishonestly using his position as a director of Remedy Housing.
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Khodr of Melbourne, Victoria, was found guilty of two counts of dishonestly using his position as a director and officer of Remedy Housing.
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Mano of St Albans, Victoria was found guilty of 11 counts of dishonestly using her position as an officer of Remedy Housing.
Leota was not charged in relation to this offending.
A sentencing hearing has been scheduled for 9 September 2025.
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.
ASIC chair Joe Longo commented: “The jury’s decision in this case demonstrates the community’s concern with deception of this scale. This prosecution demonstrates ASIC’s commitment to ensuring dishonesty in the credit and financial services industry is penalised.”
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