Bradley Keith Silver, former Gold Coast director and property developer, has today been sentenced to eight years’ imprisonment for dishonesty offences totalling over $4.7 million, following an ASIC investigation.
Between July 2008 and July 2010, Mr Silver dishonestly induced Westpac Banking Corporation to deliver property in the amount of $ 2,763,000 to Westpac customers for investing in Capital Growth International Club Pty Ltd (CGIC) and All About Property Pty Ltd (AAPD) (‘the Scheme Companies’).
ASIC’s investigation, further revealed that between April 2009 and May 2010, Mr Silver, while a director of CGIC and associated with AAPD, dishonestly used his position with the intention of causing a detriment in the amount of $2,015,000.
In February 2011, the Scheme Companies were placed into liquidation owing investors approximately $9 million (17-246MR). Many of the investors were pensioners and were approached by telemarketing or word of mouth. Investors were convinced to borrow against their homes and were told that their money would be used to develop property in Tasmania. Instead, the money paid by investors was used to pay back interest owed to other investors, payments to employees, cash withdrawals and transfers to personal bank accounts.
In delivering the sentence, Judge Deborah Richards described Mr Silver as running a sophisticated scheme involving ‘calculated dishonesty…The ripple effect of your actions has been enormous,’ she said, condemning Silver’s use of ‘callous manipulation and deception.’
‘Bradley Silver deliberately targeted the elderly, promised investors up to 20 per cent returns and convinced investors to borrow against their homes, which in many cases, was their only financial asset. ASIC will continue to pursue such deliberate and harmful conduct,’ said ASIC Commissioner Sean Hughes.
Retired NSW Nationals Senator John Williams raised concerns about reverse mortgages with Westpac, highlighting the behaviour of Bradley Silver and David St Pierre, during a Senate enquiry in 2012. Senator Williams said of Bradley Silver’s sentencing: ‘I’m glad that some of the victims of Bradley Silver got to see justice done today. It’s been a long road, but it was clear from the start that Silver and his acquaintances were taking advantage of the elderly. In my opinion, it was an investment scheme destined to fail.’
The court set Mr Silver a non-parole period of two and half years.
On 28 March 2019, Mr Silver pleaded guilty in the Brisbane District Court to seven counts of fraud to the value of $2,763,000 and six counts of dishonestly using his position as a director of CGIC and AAPD, a company with which he was associated, in the amount of $2,015,000.
The matter was prosecuted by the Commonwealth Director of Public Prosecutions.
ASIC investigations into The Scheme Companies are ongoing.
Background
Between 2008 and 2010 Mr Silver was the director of CGIC, a Gold Coast property development company and associated with AAPD, which provided property rental services.
Mr Silver engaged the services of David St Pierre, a Westpac Home Finance Manager at the Broadbeach branch, to arrange loans for some people to invest in the Scheme Companies.
ASIC’s investigation found that Mr Silver furnished Westpac Home Finance Manager, Mr St Pierre, with CGIC letters falsely certifying that the loan applicant had a pre-existing investment with CGIC and was earning monthly interest. Mr St Pierre used the false income amounts in CGIC letters to approve the loan. The loan funds were then invested with the Scheme Companies (14-264MR).
On 9 February 2017, Mr St Pierre was sentenced to three years’ imprisonment after pleading guilty to dishonest use of his position (17-025MR). ASIC permanently banned Mr St Pierre from engaging in credit activities and providing financial services on 12 March 2014 (14-043MR).
