Banned for taking $4m from SMSFs
A Gold Coast businessman has been banned from the financial services industry for taking $4 million from self-managed super fund (SMSF) investors to fund his own real estate investments.
The Federal Court in Brisbane banned Craig Gore permanently and five other people from carrying on any business related to superannuation interests.
Justice White labelled Gore’s conduct as dishonest: “Gore’s taking of monies for his own personal use which was subscribed for the purpose of investment in real estate cannot be characterised in any other way.”
Gore and his wife, Marina, along with ActiveSuper and Royale Capital owners Jason Burrows and Justin Gibson, raised $4.75 million from over 200 SMSF investors (aiming to raise at least $20 million).
They intended to establish an offshore share scheme in the US and British Virgin Islands outside of the jurisdiction of the Australian Securities and Investments Commission (ASIC).
An ASIC investigation began in 2011 and found that Royale Capital and ActiveSuper were using investors’ money to purchase distressed properties in the US via offshore companies and did so without disclosure to clients.
ASIC Commissioner Greg Tanzer said: “Today’s outcome shows the courts, ASIC and the community will not tolerate behaviour that seeks to destroy people’s lives.”
