ASIC probe leads to jail term

Mr Nebojsa Jovicic, of Robina on the Gold Coast, has been sentenced to seven years imprisonment on seven charges of misappropriation brought by the Australian Securities and Investment Commission. The sentences are to be served concurrently.

Mr Jovicic, 45, pleaded guilty in the Southport District Court to seven counts of defrauding investors, located on the Gold Coast and Brisbane, who were induced to pay a total of approximately $675,000 to Perpetual Acquisitions Pty Ltd and Robina Properties (Qld) Pty Ltd.

The conviction follows an ASIC investigation into a purported investment scheme run by Mr Jovicic between 1 January 2005 and 8 May 2006. Mr Jovicic met with potential investors in private homes and at some other venues in Brisbane, Southport and Bundaberg, on the promise of returns of 50 per cent per annum. He claimed to have secured their investments with interests in units at Mount Panorama Resort, New South Wales, and properties in Fiji.

The investors were vulnerable and inexperienced investors. The Judge noted that they had modest means and their financial situations had been severely affected for the foreseeable future. Many of them are of retirement age and had borrowed through mortgages to invest. They will not get their money back and are now forced to continue working to pay off their loans.

The investigation found that Mr Jovicic had paid substantial funds received from investors to himself which was used for personal expenses and large unexplained cash withdrawals. Some of the money had been used to pay the interest to other investors in a ponzi-style scheme.

‘Mr Jovicic’s conduct involved a gross breach of trust of the investors. His actions were very serious and have left his victims in difficult financial positions. His jailing should send a strong message that ASIC will act to ensure those who deliberately misuse and misappropriate investors money are brought to account’, ASIC Deputy Chair, Ms Belinda Gibson said.

‘The experience of the investors in this matter should serve as a timely reminder to investors to beware of returns that sound too good to be true. Before you invest in any scheme, you should do independent checks to see how the returns are really going to be made and don’t just trust the word of the person selling you the scheme’, Ms Gibson added. More information about ponzi schemes and other investment schemes can be found on ASIC’s Moneysmart website at www.moneysmart.gov.au.

Mr Jovicic will be eligible for parole on 23 December 2013.

The Commonwealth Director of Public Prosecutions prosecuted the matter.


Source: ASIC