Monday 23 April 2007 LAWFUEL – The Law Newswire – Mr Robert John Or…

Monday 23 April 2007 LAWFUEL – The Law Newswire – Mr Robert John Orehek, 44, of Castle Hill, New South Wales, pleaded guilty in the Sydney District Court today to two charges of fraudulent misappropriation amounting to $170,000. The Australian Securities and Investments Commission (ASIC) brought the charges. Mr Orehek agreed that a third offence of fraudulent misappropriation of $20,000 may be taken into account for the purposes of sentencing. On 30 March 2007, Mr Orehek also pleaded guilty to one charge of illegally issuing securities between May and November 2002.

During this time Mr 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 Mr Orehek and his associated companies.

Mr 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. Mr Orehek raised over $20 million by issuing Deeds of Loan to over 200 investors for his failed property development scheme. Many of the investors were associated with the Hillsong Church in Castle Hill.

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 matter has been put over for sentencing on 12 July 2007 in the District Court of New South Wales. For further information contact: Jan Redfern Executive Director, Enforcement Telephone: 02 9911 2338 Mobile: 0411 119 210 Michael van Maanen ASIC Media Unit Telephone: 02 9911 2658 Mobile: 0412 500 351

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