Queensland Westpoint adviser jailed

A Queensland man has been convicted and sentenced after he pleaded guilty to dealing with Westpoint products without a financial services licence.

Barry William Silver was today convicted and sentenced to six months imprisonment, with an order that he be released after entering a $1,000 good behaviour bond for three years after pleading guilty to an Australian Securities and Investments Commission charge.

Mr Silver pleaded guilty on March 22 in the Southport District Court to a charge of aiding and abetting his company Lancer Group Pty Ltd in carrying on a financial services business without holding an Australian financial services (AFS) licence.

As a result of his conviction, Mr Silver is also automatically disqualified from managing corporations for five years.

ASIC alleged that between March 13 2003 and November 30 2005, Lancer Group, of which Mr Silver was sole director, carried on a financial services business and dealt in Westpoint promissory notes while not holding an AFS licence as required under the Corporations Act.

A total of fifty investors, invested more than $3.5 million through the Lancer Group. The investments were made in promissory notes issued by various Westpoint Mezzanine companies including York Street Mezzanine Pty Ltd, Ann Street Mezzanine Pty Ltd, Emu Brewery Mezzanine Pty Ltd, Mount Street Mezzanine Pty Ltd and Bayshore Mezzanine Pty Ltd.

Mr Silver's conduct came to ASIC's attention through its broader investigation into the collapse of the Westpoint Group of Companies and via complaints received from the public.

The Commonwealth Director of Public Prosecutions prosecuted the matter.