Melbourne property developer Mark Ronald Letten facing criminal charges over alleged unregistered investment schemes
South Yarra property developer Mark Ronald Letten appeared before the Melbourne Magistrates’ Court yesterday following his arrest on 37 criminal charges, including 21 counts of operating unregistered managed investment schemes following an ASIC investigation.
Letten, an accountant and director of LGH Holdings Ltd, is alleged to have promoted and sold investments in commercial property joint venture projects that were required to be registered as managed investment schemes under the Corporations Act.
ASIC believes that more than 1,000 investors placed more than $100 million in the projects managed by Letten.
Schemes managed by Letten include the Healesville Walk Shopping Centre Joint Venture in Victoria, Reef House Resort in Palm Cove, Queensland and the Yarra Valley Golf Joint Venture in Chirnside Park.
Letten has also been charged with one count of carrying on a financial services business without an Australian financial services licence; and 15 counts of obtaining a financial advantage by deception involving amounts of approximately $1.4 million.
If convicted, he faces a maximum of five years’ imprisonment on each of the unregistered scheme charges and a maximum two years’ imprisonment regarding the charge of carrying on an unlicensed financial services business. The obtaining financial advantage by deception charges carry a maximum term of 10 years’ imprisonment.
The ASIC investigation dates back to February 17, 2010, when it commenced proceedings in the Federal Court in Victoria seeking declarations that 20 joint venture property projects associated with Letten were unregistered managed investment schemes.
On February 25 2010, the Federal Court appointed Damian Templeton and Phillip Hennessy from KPMG as receivers and managers to the property of the 15 unregistered managed investment schemes and their related companies and ordered that the schemes be wound up.
Letten was granted bail on condition that he surrender his passport and not apply for another; not attend any international point of departure in Australia; reside at his residential address; and not contact any prosecution witnesses directly or indirectly, other than the informant and company liquidator.
The matter returns to the Melbourne Magistrates’ Court on April 4, 2012.