A Sydney property developer who raised over $20 million from over 200 investors associated with the Hillsong Church, has pleaded guilty to fraudulent charges in Sydney's District Court.
Robert John Orehek of Castle Hill pleaded guilty to two charges of fraudulent misappropriation amounting to $170,000.
Orehek raised over $20 million by issuing Deeds of Loan to over 200 investors for his failed property development scheme.
Orehek, through a group of private companies he owned and controlled, raised mezzanine finance between February 2000 and November 2002 for prime residential property developments he was undertaking in the Sydney suburbs of Balmoral, Northbridge, Wahroonga, Mosman, Rose Bay, Fairlight, Cherrybrook and Glenhaven.
None of the proposed developments were ever completed and all of the companies in the Orehek group are now in liquidation.
Nearly all of the investors have lost their money.
The Australian Securities and Investments Commission brought the charges. Orehek agreed that a third offence of fraudulent misappropriation of $20,000 may be taken into account for the purposes of sentencing.
The matter has been put over for sentencing on July 12, 2007 in the District Court of New South Wales.
On March 30, 2007, Orehek also pleaded guilty to one charge of illegally issuing securities between May and November 2002.
During this time Orehek was the sole director and shareholder of Norton Investments Pty Ltd and facilitated the issue of 27 debentures that were issued without a disclosure document being lodged with ASIC or being made available to investors.
The 27 debenture holders invested a total of $2.619 million with Orehek and his associated companies.
Australian Property Journal
