Simich pleads guilty

FORMER Allied Carpet Industries director Michael Simich has pleaded guilty to 59 fraud and stealing charges relating to the misuse of $3.1 million in the Perth District Court.

Mr Simich obtained money from mainly WA investors through his company Allied and a partnership International Corporate Carpets.

He promised these investors high returns over a short period of time on investments in non-existent carpeting jobs.

The Australian Securities and Investments Commission alleged that Mr Simich had been involved in a ponzi-style investment scheme, by using new investors’ funds to repay earlier investors.

Following delays in repayments to some participants in the scheme an investor petitioned the Supreme Court of WA to have Allied placed in provisional liquidation.