Two years imprisonment after investors misled over property developments: ASIC
ASIC has permanently banned Victoria-based Clestus Remegius Weerappah, former director of Dollarforce Financial Services, from providing any financial services after he was convicted of serious fraud offences surrounding three property developments.
Dollarforce, collapsed in 2009 with a $24 million deficiency, lost investors more than $8 million collectively.
Weerappah, 48, Oakleigh Victoria, has pleaded guilty in the Victorian Count Court.
He pleaded guilty to using his position dishonestly with the intention of gaining an advantage by misleading investors into the following purchases and developments (he was a director of all three):
- $1,200,000 for the Ivory Property Group
- $1,780,000 for My Building No. 1 Pty Ltd
- $1,286,950 for Bennett Street Developments
He has also had a guilty plea for one charge of falsifying a document lodged with ASIC concerning a $2,955,000 loan that had been forgiven by the company and one charge of falsifying books relating to Altitude Property Number 1 Pty Ltd in regards to the sale of a Balwyn Property for $1,300,000.
Weerappah will serve two years before he is eligible for parole, and has been ordered to repay $3.7 million to some investors.
He does have the right to appeal to the Administrative Appeals Tribunal for a review of the decision.