<p>The
Australian Securities and Exchange Commission (ASIC) informed on Wednesday that
David Sipina, a former Courtenay House Director, was charged with criminal offenses
relating to the $180 million foreign <a href=”https://www.financemagnates.com/terms/e/exchange/” class=”terms__main-term” id=”b5da6e64-2afe-421d-9b81-16404b7d59d6″ target=”_blank”>exchange</a> (FX) <a href=”https://www.financemagnates.com/tag/ponzi-scheme/” target=”_blank” rel=”follow”>Ponzi scheme</a>. The maximum
penalty he faces for his misconduct is ten years in prison and a financial fine
of $810,000.</p><p>ASIC Bring Criminal
Charges Against Courtenay House Director</p><p>According
to the ASIC statement published Today, Sipina was accused by Downing Centre
Local Court on 21 February 2023 and is currently the third person facing criminal
charges for Courtenay House’s illegal activities, which took place between 2010
and 2017. However, the Australian judge examined Sipina’s involvement in the scheme
during the last two years of its operations.</p><p>Sipina has
been charged with conducting a financial services business without the
necessary license, engaging in dishonest conduct regarding a financial product
or service, and dealing in proceeds of crime valued at $1 million or more.</p><p>According
to the Australian court, Courtenay House operated as a Ponzi scheme and convinced
at least 585 investors to invest more than $180 million based on false
representations that their funds would be traded in <a href=”https://www.financemagnates.com/tag/forex/” target=”_blank” rel=”follow”>FX and futures markets</a>. However,
it is alleged that only a small portion of the funds was traded, and the
majority of new investor resources were used to pay older investors. </p><p>Additionally,
it is alleged that Sipina obtained personal information from investors through
false pretenses and used that information to deceive representatives of the
responsible entity for the Courtenay House Capital Investment Fund.</p><p>Watch the recent FMLS22 panel titled: “Regulation Roundup: Everything You Need to Know for 2023.”</p><p>Two Already Pleded Guilty</p><p>The first
verdict in the $180 million financial pyramid case <a href=”https://www.financemagnates.com/forex/fx-ponzi-scheme-defrauded-180m-director-faces-10-years-in-jail/” target=”_blank” rel=”follow”>came in November 2022</a>, when
Tony Iervasi, the mastermind behind Courtenay House, was found guilty. Athan
Papoulias, an associate of Irevasi, pleded guilty a month later.</p><p>”In
addition to offering purported ‘standard’ investment products, Mr Iervasi ran
several ‘investment specials’ to encourage trading. In December 2016, Mr
Iervasi invited clients to invest in a ‘US Election Special Trade’ which was to
take place between 1 January 2017 and 1 February 2017 to coincide with the
Inauguration of President Trump, as a way to invest in what Mr Iervasi claimed
was ‘fast-money markets’,” <a href=”https://www.financemagnates.com/terms/a/asic/” class=”terms__secondary-term” id=”dfb41d67-b79e-4b09-b365-1f341b85a51b” target=”_blank”>ASIC</a> commented.</p><p>Although
there is no allegation that Sipina or Papoulias were aware of the Ponzi scheme,
they allegedly facilitated its continuation and gained benefits through their
conduct.</p><p>The first
interim sentences in their cases were handed down back in 2017 when all three
were banned from conducting financial services in Australia. The court decided
to secure the funds necessary to cover the claims of deceived customers of the <a href=”https://www.financemagnates.com/tag/pyramid/” target=”_blank” rel=”follow”>pyramid scheme</a>.</p>
This article was written by Damian Chmiel at www.financemagnates.com.
