A Coffs Harbour mortgage broker was charged with dishonestly obtaining a financial advantage and fraudulently misappropriating funds totalling $13.5 million following an investigation by the Australian Securities and Investments Commission.
Dominic Cincotta appeared in the Downing Centre Local Court in Sydney where he was charged with 23 charges under the New South Wales Crimes Act.
ASIC alleges Cincotta arranged investments for a number of clients between November 1998 and December 2004.
The funds were purportedly invested with Perpetual Trustees Australia Limited in accounts such as a mortgage offset account, bricks and mortar fund, fixed mortgage investment account or investment deposit account, earning interest at rates between 6.75% and 12% per annum.
It is alleged the funds were, in fact, deposited to accounts controlled by Cincotta, including a Perpetual Investment Management Limited cash management account in the name of his wife Mrs Patrice Cincotta and a St George Bank account.
On March 28, 2006, Cincotta appointed David Morgan, of Clout and Associates, as the external administrator of his company, ACN.
The court made a number of orders concerning bail.
Cincotta’s current passport has previously been surrendered in civil proceedings before the NSW Supreme Court and at the conclusion of those proceedings the passport is to be handed over to ASIC.
Cincotta is not to apply for a new passport or any other travel document, is not to approach international points of departure and must notify ASIC within 24 hours of any change of residential address.
Cincotta is not to contact witnesses in this matter to discuss this matter, other than for the purpose of repaying funds owed to those witnesses.
The matter will be listed for mention on June 13, 2006.
The Commonwealth Director of Public Prosecutions is prosecuting this matter.
By Kathryn O’Meara
