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Retirement

10 years behind bars for SMSF company director

  • April 07 2020
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Retirement

10 years behind bars for SMSF company director

By Grace Ormsby
April 07 2020

The company founder and director alleged to have misappropriated $1.2 million in SMSF monies has been sentenced to 10 years imprisonment for his deception.

10 years behind bars for SMSF company director

10 years behind bars for SMSF company director

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  • April 07 2020
  • Share

The company founder and director alleged to have misappropriated $1.2 million in SMSF monies has been sentenced to 10 years imprisonment for his deception.

10 years behind bars for SMSF company director

George Nowak had pleaded guilty to 17 counts of aggravated deception and one count of dishonest dealings with documents in the District Court of South Australia back in February.

He was in the third week of his criminal trial at the time.

The offences related to his conduct in dealing with members of self-managed super funds, with the SMSFs undertaking property purchases offered by companies of which Mr Nowak was a director.

ASIC has reported that Mr Nowak failed to hold the $1.2 million in SMSF monies in a designated account and did not apply funds towards the intended property purchases between December 2012 and December 2013.

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Mr Nowak was the director of the Charterhill group of companies, which operated as a “one-stop shop” in providing advice to clients on the establishment of SMSFs, the rollover of existing funds into SMSFs, the sourcing and purchase of investment properties, as well as assistance on property management, insurance and taxation.

In delivering Mr Nowak’s sentence, which has a non-parole period of six years and three months, Judge Sophie David emphasised the “utmost seriousness” of the offence.

She said the fraud had had a significant impact on the lives of Mr Nowak’s victims and was perpetuated to fund a lavish lifestyle.

Weighing in on the penalty decision, ASIC commissioner Danielle Press said Mr Nowak had “deliberately misled clients and used their funds for his own benefit”.

“Mr Nowak dishonestly and deliberately breached his clients’ trust.”

She said the court’s sentence “reflects the seriousness of this conduct and the impact it had on Mr Nowak’s clients”.

10 years behind bars for SMSF company director
10 years behind bars for SMSF company director
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About the author

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Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

About the author

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

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