Couple charged for alleged $1.5 million "Ponzi" property development fraud

Carrum Downs couple Maureen Gael Johnson, 58, and Douglas Gordon Johnston, 71, have been charged with more than 70 offences relating to an alleged $1.5 million property development fraud, following an investigation by the Australian Securities and Investments Commission (ASIC).

ASIC investigated two companies: Investman Nominees (USA) Pty Ltd and Small Business Management Pty Ltd, of which Maureen Johnston was a former director and current director respectively. Douglas Johnston was the former accountant and current shareholder of Small Business Management.

The Victorian duo is accused of misleading people into investing $1.5 million into a number of property developments across Australia and the United States. Allegedly, the money raised was not used to develop properties, but for the couple’s own personal benefit, resembling a ‘Ponzi scheme’.

The Herald Sun reports that Maureen Johnston was a high roller at Melbourne's Crown Casino where she had used her connections with Collingwood football players to help her befriend potential targets.

Maureen Johnston faces 52 counts, while Douglas Johnston faces 25. The charges include fraud, obtaining a financial advantage or property by deception and attempting to pervert the course of justice. Some of these offences carry a maximum penalty of 10 years imprisonment.

The couple are set to appear at the Melbourne Magistrates Court on 28 January 2015.