FOUR YEARS' JAIL FOR USING INVESTOR FUNDS TO PAY DEBT

Written on the 10 November 2016

FOUR YEARS' JAIL FOR USING INVESTOR FUNDS TO PAY DEBT
FREDERICK Leslie Hansen has been jailed for four years for using $5.7 million in investor funds to pay his own debts.

The former Clear Island Waters resident was sentenced today at Southport District Court today after pleading guilty to two counts of dishonestly using his position as a director of Global Rule.

ASIC alleged that between October 2008 and September 2010, Hansen knowingly caused an unrelated personal debt in the amount of $8,423,333 million to be incurred by Global Rule.

During the period, the defendant then used $5,721,424 of Global Rule investors' funds to commence repaying the debt.

Hansen will be eligible for parole after serving two years in prison, taking into account time already served in custody.

ASIC Commissioner Greg Tanzer says, "Hansen's actions betrayed the trust of his investors and caused them significant hardship. Today's decision shows that this type of behaviour will be met with serious consequences."

The matter was prosecuted by the Commonwealth Director of Public Prosecutions.

Global Rule operated an unregistered managed investment scheme on the Gold Coast and was described as a company that created wealth, provided outstanding financial benefits to its partners and delivered humanitarian aid throughout Australia.

What it offered was for investors to participate in an unsecured loan agreement that would supposedly return 1.8% per month (21.6% per annum) in interest payments.

Investment was available to individuals, trusts, businesses and self-managed superannuation funds.

The recent criminal proceedings against Hansen follows earlier ASIC proceeding brought in the Supreme Court of Queensland appointing Michael McCann, of Grant Thornton, as liquidator of Global Rule Pty Ltd and as trustee of the Global Rule Trust.

The Liquidators of Global Rule Pty Ltd reported that it is estimated that around 170 individuals loaned money to Global Rule and approximately $16.3 million was owed to lenders.

 

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