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The offer of “interest-free” mortgages has landed three Victorians in court.
Brent Lindsay Smith, Fue Hiedi Mano and Mahmoud Khodr appeared in the Melbourne Magistrates Court on 16 June 2022, charged with criminal directors’ duties breaches relating to “interest-free” mortgages offered by their company, Remedy Housing.
Remedy Housing was operated by Mr Smith and Mr Khodr as director and secretary, respectively, with Ms Mano involved in the promotion of the business.
The matter is being prosecuted by the CDPP after an investigation and referral by ASIC.
Between November 2019 and February 2021, it’s alleged that the trio dishonestly represented to consumers that their clients would be provided with an “interest-free mortgage” and title to a home within 12 months of payment of a deposit of at least $10,000.
They purportedly told clients that if Remedy Housing could not provide a home to the consumer within 12 months, the deposit would be refunded in full.
It’s also alleged that Remedy Housing made false reports about its financers, including claiming they had received funding from former Samoan international rugby union player Trevor Leota. The consumers they targeted were primarily from Pacific Islander communities in Australia and New Zealand.
Mr Leota is understood to have been involved in the business in some capacity, with ASIC stating he had promoted it to consumers. Mr Leota has not been charged in these proceedings.
ASIC claims that Remedy Housing had no investors or funders and that the funds acquired by Remedy Housing were used to operate and promote the scheme or were transferred to the personal accounts of the company directors and officers.
Mr Smith is charged with five offences of dishonestly using his position as a director of Remedy Housing.
Mr Khodr is charged with one offence of dishonestly using his position as a director and officer of Remedy Housing.
Mr Smith and Mr Khodr are each jointly charged with dishonestly using their position.
Ms Mano is charged with 12 offences of dishonestly using her position as an officer of Remedy Housing.
The maximum penalty for each offence of dishonest use of position as a director or officer is up to 15 years imprisonment and/or a fine of up to $765,000.
ABOUT THE AUTHOR
Juliet Helmke
Based in Sydney, Juliet Helmke has a broad range of reporting and editorial experience across the areas of business, technology, entertainment and the arts. She was formerly Senior Editor at The New York Observer.
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