Gold Coast director and property developer sentenced to eight years’ imprisonment

“Owing investors approximately $9 million (17-246MR). Many of the investors were pensioners and were approached by telemarketing or word of mouth. Investors were convinced to borrow against their homes and were told that their money would be used to develop property in Tasmania. Instead, the money paid by investors was used to pay back interest owed to other investors, payments to employees, cash withdrawals and transfers to personal bank accounts.”

Bradley Keith Silver, former Gold Coast director and property developer, has today been sentenced to eight years’ imprisonment for dishonesty offences totalling over $4.7 million, following an ASIC investigation.

Between July 2008 and July 2010, Mr Silver dishonestly induced Westpac Banking Corporation to deliver property in the amount of $ 2,763,000 to Westpac customers for investing in Capital Growth International Club Pty Ltd (CGIC) and All About Property Pty Ltd (AAPD) (‘the Scheme Companies’).

ASIC’s investigation, further revealed that between April 2009 and May 2010, Mr Silver, while a director of CGIC and associated with AAPD, dishonestly used his position with the intention of causing a detriment in the amount of $2,015,000.

In February 2011, the Scheme Companies were placed into liquidation owing investors approximately $9 million (17-246MR). Many of the investors were pensioners and were approached by telemarketing or word of mouth. Investors were convinced to borrow against their homes and were told that their money would be used to develop property in Tasmania. Instead, the money paid by investors was used to pay back interest owed to other investors, payments to employees, cash withdrawals and transfers to personal bank accounts.

In delivering the sentence, Judge Deborah Richards described Mr Silver as running a sophisticated scheme involving ‘calculated dishonesty…The ripple effect of your actions has been enormous,’ she said, condemning Silver’s use of ‘callous manipulation and deception.’

ASIC’s investigation found that Mr Silver furnished Westpac Home Finance Manager, Mr St Pierre, with CGIC letters falsely certifying that the loan applicant had a pre-existing investment with CGIC and was earning monthly interest. Mr St Pierre used the false income amounts in CGIC letters to approve the loan. The loan funds were then invested with the Scheme Companies