Brent Lindsay Smith, Fue Hiedi Mano, and Mahmoud Khodr have been charged with criminal directors’ duties breaches relating to “interest-free” mortgages offered by Remedy Housing.
The three directors and officers of Remedy Housing appeared in the Melbourne Magistrates Court, for allegedly being dishonest in representing to consumers that:
- Remedy Housing would provide a consumer with an “interest-free mortgage” and title to a home within 12 months of payment of a deposit of at least $10,000
- if Remedy Housing could not provide a home to the consumer within 12 months, the deposit would be refunded in full
- Remedy Housing was financed by overseas investors, including former Samoan international rugby union player Trevor Leota (Leota has not been charged in these proceedings)
The alleged mortgage scam happened between November 2019 and February 2021. On June 17, 2021, ASIC moved to shut down Remedy Housing and successfully obtained interim orders and injunctions from the Federal Court against Smith, Khodr, Leota, and Remedy Housing.
It was alleged that Remedy Housing had no investors or funders and that the funds acquired by Remedy Housing were used to operate and promote the scheme or were transferred to the personal accounts of the company directors and officers, ASIC said.
Smith was charged with five offences of dishonestly using his position as a director of Remedy Housing and Khodr with one offence of dishonestly using his position as a director and officer of the company, with each jointly charged with dishonestly using their position. Mano was charged with 12 offences of dishonestly using her position as an officer of Remedy Housing.
The matter is being prosecuted by the CDPP after an investigation and referral by ASIC. Each offence of dishonest use of position has a maximum penalty of up to 15 years imprisonment and/or a fine of up to $765,000.
