Tuesday 19 September 2006 – LAWFUEL – Australian Law News – Mr Mohammad Zareei, of Baulkham Hills, New South Wales, has been committed to stand trial in the NSW District Court on fraud charges following an investigation by the Australian Securities and Investments Commission (ASIC).
ASIC alleges that Mr Zareei unlawfully provided financial services to a number of investors who were enticed into investing in securities known as ORB 1, ORB 2 and OMIP 15 – 7, through the use of Macquarie Bank Margin Lending. Mr Zareii was formerly employed by Progressive Investment Securities Pty Ltd. The investors involved were required to enter into agreements with Macquarie Bank for up to $300,000 in margin loans on each product. Many of these loans are now in default.
Many of their clients lived in Sydney’s southern and western suburbs. It is also alleged that in many instances application forms for the margin loan facilities and interest prepayments were either fabricated or submitted without the investors’ knowledge. Mr Zareei was charged with unlawfully providing a financial service and inducing persons to deal in securities under the Corporations Act. He has also been charged with two counts of creating false instruments, or documents, regarding an application for finance and an interest pre-payment application, which were both submitted to Macquarie Bank.
In addition, Mr Zareei faces seven counts of obtaining a financial advantage by using false or misleading statements under the NSW Crimes Act. Mr Zareei will next appear before the NSW District Court on 29 September 2006. This matter is being prosecuted by the Commonwealth Director of Public Prosecutions. Background Mr Tunde Doja and Mr Manoucher (Mark) Tivay have previously been committed to stand trial in the NSW District Court on charges laid as a result of ASIC’s investigation into this matter.
They are next due to appear before the NSW District Court on 29 September 2006. Ms Nellie Enares has also been charged as a result of this investigation and is due to stand trial in the NSW Local Court on 20 December 2006. For further information contact: Allen Turton Deputy Executive Director, Enforcement Telephone: 02 9911 2338 Mobile: 0411 549 236 Danielle Huck ASIC Media Unit Telephone: 03 9280 3407 Mobile: 0417 540 769