An ASIC investigaton has resulted in Mark Letten, accountant and director of LGH Holdings, being charged with 37 criminal acts, including 21 counts of operating unregistered managed investment schemes (MIS).
Letten, of South Yarra, Melbourne, appeared before the Melbourne Magistrates' Court after his arrest, the corporate regulator said.
Letten was charged with 21 counts of operating unregistered MIS; one count of carrying on a financial services business without an Australian financial services licence; and 15 counts of obtaining a financial advantage by deception involving amounts of about $1.4 million.
It said the charges related to the purchase or development of property in Australia and New Zealand.
In 2010, after applications by ASIC, orders were made in the Federal Court of Victoria winding up 15 operating unregistered MIS.
Damian Templeton and Philip Hennessy were appointed receivers and managers of the scheme property and 52 related entities.
Templeton and Hennessy were also appointed receivers and managers of the scheme property of a further six concluded schemes.
The scheme-related companies have been placed in liquidation following ASIC investigations, and Templeton and Hennessy were appointed liquidators.
The liquidators have estimated that in excess of $100 million was collected from about 1000 investors between 1998 and 2010.
"Mr Letten faces a maximum of five years' imprisonment on each of the unregistered scheme charges and a maximum two years' imprisonment regarding the charge of carrying on an unlicensed financial services business," ASIC said.
"The 'obtaining financial advantage by deception' charges carry a maximum term of 10 years' imprisonment."
He was granted bail on condition that he surrender his passport and refrain from applying for another; stay away from any international point of departure in Australia; remain at his residential address; and refrain from contacting any prosecution witnesses directly or indirectly other than the informant and company liquidator.
The case will resume in the Melbourne Magistrates' Court on 4 April.
