Tony Iervasi, former director of Ponzi scheme operator Courtenay House has been sentenced in the Supreme Court of NSW to 11 years imprisonment with a non-parole period of seven years for criminal charges relating to the $180 million scam.
Supreme Court Justice Sweeney said Mr. Iervasi was dishonest on an ‘egregious scale’, ‘establishing the veneer of a successful wealth-creating business…which sought to reassure and persuade victims to invest’.
11 years in jail for $180 million scam
Between 13 December 2010 and 21 April 2017, Tony Iervasi was the sole director and shareholder of Courtenay House, which raised around $180 million from around 585 investors. The total net loss to victims was found to be around $54 million and Tony Iervasi used $12 million of investor funds.
The Courtenay House companies raised $180 million from 585 investors with the official goal of trading Forex and futures markets. However, only around three percent on moneys deposited was actually traded. Instead, monthly amounts paid to investors were derived from capital deposited by new investors.
Tony Iervasi “inflicted damage on hundreds of people”
ASIC Deputy Chair Sarah Court said: “ASIC pursued this matter as part of our commitment to protect investors. Mr Iervasi’s actions betrayed the trust of his clients and inflicted damage on hundreds of people. Today’s sentence demonstrates that such deliberate fraudulent activities will not be tolerated.”
The sentence included a significant discount considering Mr. Iervasi’s guilty plea and other factors. Justice Sweeney took into account “the total period of offending, of about 6½ years, the nature and circumstances of the offending; which included sustained deceit, the large number of victims, the total amount of money they deposited, the total net loss to victims of $54 million, and the total amount of dishonestly obtained funds used for the offender’s benefit, of about $12 million”.
“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,” Justice Sweeney said.
Mr. Iervasi pleaded guilty to four offenses of engaging in dishonest conduct in relation to a financial product or financial service contrary to s1041G Corporations Act 2001 (Cth). Mr. Iervasi also pleaded guilty to an offense of carrying on an unlicensed financial services business contrary to s 911A Corporations Act 2001 (Cth). He also admitted his guilt in relation to a further two s1041G offences which were taken into account on sentence.
The liquidators of Courtenay House Capital Trading have distributed dividends of 28 cents in the dollar. The liquidation process is ongoing.
David Sipina also pled guilty
The Downing Centre Local Court heard David Sipina’s guilty plea on March 19, 2024, for one count of operating a financial services business without a license and one count of dealing in proceeds of crime amounting to $1 million or more.
Sipina’s guilty plea acknowledges his participation in an unlicensed financial services business from June 24, 2015, to April 21, 2017, where his responsibilities included investor referral and marketing. Notably, it was not alleged that Sipina was aware of the underlying Ponzi scheme. Additionally, he admitted to dealing with proceeds of crime through the commissions he earned by promoting investments in Courtenay House, despite its unlicensed status.
