A Perth businessman who defrauded clients of more than $34 million in what was described as a “Ponzi scheme” has been sentenced to 14 years in prison.<\/p>\n
Convicted fraudster Chris Marco took millions from people, telling them he would invest in “private placement programs” that promised high returns.<\/p>\n
But what he was paying them in returns turned out to be their own, or other people’s, money and no actual investments were made.\u00a0<\/p>\n
At a sentencing hearing on Thursday, prosecutor Steven Whybrow told the court the payments were made “as part of a Ponzi scheme”, describing Marco as no different to a gambler who hoped to “hit the jackpot” at some point.<\/p>\n
<\/p>\n
Prosecutor Steven Whybrow. (ABC News: David Weber)<\/p>\n
One of his victims told the court of the “devastating and ongoing” impact the fraud had on him, which resulted in him losing his family home while every dollar in his superannuation was “wiped out”.<\/p>\n
Millions funnelled into Marco’s accounts<\/p>\n
The Supreme Court of WA heard more than $253.8 million was put into Marco’s bank accounts from a large number of individuals, with less than $200 million paid back out.<\/p>\n
When Marco informed investors of their returns, which in reality was other people’s money, he urged them to roll over the funds into a new high interest program.<\/p>\n
The six complainants who were part of the Supreme Court trial lost $34 million.<\/p>\n
Last month, at the end of that lengthy trial, the 67-year-old was found guilty of 43 counts of fraud, committed over several years until 2018, when the Australian Securities and Investments Commission intervened.<\/p>\n
<\/p>\n
Chris Marco\u00a0told clients he would invest in schemes that promised high interest rates. (ABC News: Greg Pollock)<\/p>\n
In handing down the sentence, Justice Natalie Whitby said his offending was at the “high end of the scale of seriousness”.<\/p>\n
She said $11 million, which was sent overseas for “investment purposes”, represented a very small portion of the funds he had amassed.<\/p>\n
“Victims’ money was not being invested in the programs you represented to them \u2026 and you knew it,” she said.<\/p>\n
Justice Whitby told Marco his victims said they felt shame over what had occurred.<\/p>\n
“That shame is yours, not theirs,” she told him.<\/p>\n
‘Wiped out’: victim<\/p>\n
Andrew Batchelar, who was the first witness at the trial, read out a victim impact statement via video-link on Thursday, detailing the “devastating and ongoing” impact on him.<\/p>\n
He said his family home was lost and every dollar in his superannuation was “wiped out”.<\/p>\n
Mr Batchelar said he continued to suffer “deep psychological trauma” and had an “enduring loss of trust” in others and even in himself.<\/p>\n
He told the court it was all because of “one man’s calculated lies” and he flagged a compensation claim.<\/p>\n
Defence lawyer Luka Margaretic raised questions about Mr Batchelar’s losses, saying that he had initially achieved a profit and made commissions referring others to Mr Marco.<\/p>\n
<\/p>\n
Defence lawyer Luka Margaretic raised questions about Mr Batchelar’s losses.<\/p>\n
Mr Margaretic also told the court the people who had dealt with his client were not “mum and dad” investors and “were certainly more sophisticated”.<\/p>\n
Marco was given sentences ranging from two to six years for each offence with Justice Whitby ruling 14 years was the total effective sentence.<\/p>\n
He will be eligible for parole after serving 12 years.<\/p>\n
Speaking outside court, Mr Margaretic said there would be appeals against the convictions and the sentencing.<\/p>\n
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