Queensland property scheme operator pleads guilty to fraud

Both companies raised approximately $9 million from investors — mainly pensioners — between 2008 and 2010. 

Mr Silver’s charge follows on from the 2019 sentencing of his son, Bradley Silver, to eight years imprisonment after pleading guilty to dishonesty relating to the scheme companies totalling over $4.7 million. 

Additionally, David St Pierre — former Westpac home finance manager — was sentenced to three years in 2017 for dishonest use of his position concerning his role in submitting false loan applications to obtain over $2.5 million for Westpac customers to invest in the scheme companies.

Mr Silver has pleaded guilty to misappropriating $1.82 million from the corporations between April 2009 and June 2010 after transferring funds to his personal bank account, making payments to company employees, and paying returns to other investors.

The victims of the scheme were reportedly approached to invest in the scheme companies through cold-call telemarketing and word of mouth. They were told that their funds would be used to develop Tasmanian property and invested in bank term deposits.

Investors were promised returns of 15 to 20 per cent per annum on their investment, with some victims convinced to borrow against their homes to invest with the scheme.

Mr Silver was the primary decision-maker for both companies and directed how the funds were used. The charges against him carry a maximum sentence of 12 years imprisonment, and he has been remanded in custody to appear at a sentencing hearing on 28 October 2022.

The matter is being prosecuted by the Commonwealth Director of Public Prosecutions after the referral of a brief of evidence by ASIC.

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