Tony
Iervasi, the former sole director of Courtenay House, has been sentenced to 11
years in prison with a non-parole period of seven years for his role in
orchestrating a $180 million Ponzi scheme that defrauded hundreds of investors.
In the ongoing case that has
lasted for years, charges have also been brought against other individuals.
Former Director of $180M
Ponzi Scheme Sentenced to 11 Years in Prison
The
Courtenay House companies, based in Sydney, operated under the guise of a
legitimate forex and futures trading business. However, only about 3% of the
funds deposited by investors were actually traded. Instead, Iervasi used new
investor capital to pay returns to existing clients, perpetuating the classic
structure of a Ponzi scheme.
Tony Iervasi has been sentenced to 11 years imprisonment over his involvement in the operation of the Courtenay House ponzi scheme https://t.co/od1Gs3ByQ2 pic.twitter.com/mecw6aBC11
— ASIC Media (@asicmedia) September 2, 2024
Over a
period of approximately 6.5 years, from December 2010 to April 2017, Iervasi’s
scheme raised around $180 million from approximately 585 investors. The total
net loss to victims amounted to $54 million, with Iervasi personally benefiting
from about $12 million of the fraudulently obtained funds.
“Mr. Iervasi’s actions betrayed the trust of his clients and inflicted damage on
hundreds of people,” commented
ASIC Deputy Chairwoman, Sarah Court. “Today’s sentence demonstrates that such
deliberate fraudulent activities will not be tolerated.”
Two Others Also Plead
Guilty
Iervasi is
not the only individual implicated in the $180 million Ponzi scheme. Last year,
criminal charges were also presented against David Sipina, a former director at
Courtenay House. According to court records, Sipina could face a maximum
penalty of ten years in prison and a fine of $810,000 for his actions.
In March of
this year, Sipina
confessed to operating a financial services business without the necessary
license from 2015 to 2017, in collaboration with others. He also admitted to
dealing with proceeds of crime amounting to $1 million or more.
Furthermore,
in May 2023, a former contractor Athan Papoulias was
sentenced to two years’ imprisonment. His sentence is to be served through
an intensive corrections order along with completing 120 hours of community
service.
Harm Went beyond Financial
Losses
The
sentence was handed down by Justice Deborah Sweeney in the Supreme Court of New
South Wales, following
Iervasi’s guilty plea to multiple charges of financial misconduct.
Justice
Sweeney highlighted the severe consequences for the scheme’s victims, which
extended beyond financial losses.
“As
well as the loss of life savings and family homes, the harm went beyond
financial losses to breakdowns of marriages and family relationships,
emotional, physical and mental health issues, and the need to delay retirement
or resume working in the face of a loss of financial security in their mature
years,” she said.
Iervasi
pleaded guilty to four counts of engaging in dishonest conduct related to
financial products or services, as well as one count of operating an unlicensed
financial services business.
The case
was prosecuted by the Office of the Director of Public Prosecutions following
an investigation and referral by the Australian Securities and Investments
Commission (ASIC).
This article was written by Damian Chmiel at www.financemagnates.com.
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