Ten charges have been lodged by the Australian Securities and Investments Commission (ASIC) against a former employee of Queensland-based company 1st State Home Loans.
Between February 1998 and July 2001, Rocco Ferrantino’s scheme netted around $1.4 million worth of funds from 95 investors.
Ferrantino pleaded guilty to dishonestly inducing holders of superannuation benefits to roll their preserved funds into 1st State Superannuation Funds and to “causing detriment to clients” who had relied on him for advice in buying a house.
According to ASIC, Ferrantino falsely advised clients who did not meet early release criteria or preservation age requirements that their superannuation was accessible to help finance the purchase of a house.
The Commonwealth Director of Public Prosecutions is prosecuting the matter, with a date yet to be fixed for his sentencing in Southport District Court.
The criminal proceedings follow ASIC’s civil action in February 2003, when the Supreme Court of Queensland appointed liquidators to 1st State Home Loans Pty Ltd and related companies Aynat Gold Nominees Pty Ltd, Ferndune Pty Ltd, United Project Developments Pty Ltd and Favstor Pty Ltd.
