By Chris Zappone
The two executives allegedly behind the $60 million collapsed Geelong-based investment house Chartwell Enterprises have been charged over the company's failure.
Ian Rau, ex-secretary of Chartwell Enterprises, was arrested by Queensland police and charged with 19 offences including 10 counts of dishonest conduct in relation to financial services, the Australia Securities & Investments Commission said.
Former Chartwell company director Graeme Hoy.Credit: Pat Scala
Former Chartwell director Graeme Hoy was also charged with 22 offences, including 148 counts of obtaining financial advantage by deception, according to a statement from the regulator.
The men are due to appear at Geelong Magistrates Court on September 11, ASIC said.
Chartwell Enterprises went into voluntary administration in April of 2008, eliminating the savings of thousands of investors, many of them living in the Geelong area.
The investment company was allegedly insolvent since at-least mid 2005, but kept the fact secret from investors who continued to turn over their money to Mr Rau and Mr Hoy up until its collapse.
In addition to the dishonest conduct charges, Mr Rau was also charged with dishonest use of position in the company, obtaining a financial advantage by deception, four counts of using false documents and one count of carrying on an unlicensed financial services business.
The charges against Mr Hoy include carrying on an unlicensed financial services business, 41 counts of dishonest conduct and one count of dishonest use of position in the company.
Geelong-area investors were so outraged by the company's alleged deception, Chartwell's offices were vandalised in the aftermath. The case, which was brought by ASIC, will be prosecuted by the Commonwealth Director of Public Prosecutions.