He admits responsibility for promoting an unlicensed financial operation
A third person, a resident of Croydon, New South Wales identified as David Sipina, has admitted guilt to criminal offences in connection with his activities at the Courtenay House group of companies.
The admission came during Sipina’s appearance on Tuesday at the Downing Centre Local Court, where he confessed to operating a financial services enterprise without the necessary licence, in violation of section 911A of the Corporations Act 2001, and to dealing with proceeds of crime exceeding $1 million, contravening section 400.3(1) of the Criminal Code.
His involvement at Courtenay House primarily entailed recruiting new investors and promoting the company’s investment schemes, which promised substantial returns from trading in the Forex and Futures markets.
David Sipina has pleaded guilty to charges of carrying on an unlicensed financial services business and dealing in the proceeds of crime, related to his role at the Courtenay House group of companies https://t.co/gAaddCYt3L pic.twitter.com/TOPOIUhMj1
— ASIC Media (@asicmedia) March 19, 2024
According to the Australian Securities and Investments Commission (ASIC), around 585 investors poured more than $180 million into Courtenay House, under the impression their funds would be actively traded. However, it was alleged that only a minor portion of these funds were used as described, with the majority being diverted to pay returns to earlier investors in a classic Ponzi scheme fashion.
While Sipina has accepted responsibility for promoting an unlicensed financial operation and for handling what he believed to be criminal proceeds, there is no suggestion he was aware of the Ponzi scheme.
Following his guilty plea, Sipina is now awaiting sentencing in the Sydney District Court, with his first appearance scheduled next month. A third charge of dishonest conduct related to financial products or services was dropped after his admission of guilt to the other counts.
This case, prosecuted by the Commonwealth Director of Public Prosecutions upon referral from ASIC, marks Sipina as the third individual to plead guilty to criminal charges linked to the Courtenay House operations.
Previously, Athan Papoulias, a former contractor for Courtenay House, received a two-year sentence, served through an intensive corrections order, including 120 hours of community service. Tony Iervasi, the former director of Courtenay House, has also admitted to his role in running the Ponzi scheme, with his sentencing scheduled for late April.
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