Astarra's Shawn Richard pleaded guilty to two charges of dishonest conduct in the course of carrying on a financial services business and admitted a third charge of making false statements in relation to financial products.
According to ASIC's website, Richard, 35, appeared at Sydney's Downing Centre Local Court on 7th December to face allegations that he dishonestly received undisclosed payments in his role as investment manager of the Astarra Stategic Fund (ASF) and Astarra Superannuation Plan (ASP) and that he knowingly made materially misleading statements about the value of investments made by the ASF.
ASIC alleged, among other things, that Mr Richard was involved in causing the ASF and ASP to place investor monies in overseas hedge funds, in circumstances where Mr Richard would personally receive a significant portion of the monies for his own benefit and for the benefit of his company, AAM. The monies Richard placed in the overseas hedge funds had been raised by the responsible entity of ASF, Trio Capital Limited (Trio). ASIC alleged that Richard and AAM received in excess of $6.4 million in undisclosed payments.
ASIC also alleged that Mr Richard made materially misleading statements about the value of the ASF's investments in the overseas hedge funds, knowing that these statements were included in valuation statements provided to Trio and were likely to have the effect of inducing Trio to seek further investments in the hedge funds.
The charges each carry a maximum penalty of 5 years' imprisonment or a $220,000 fine, or both when Richard returns for sentencing on 4th February 2011.
