04-093 Former directors of Jetsby Pty Ltd sentenced
Wednesday 31 March 2004
Mr James Allen Balacco of McDonald Park, South Australia (SA) and Mr Terence Eric Loveday of South Plympton, SA, were sentenced today on a charge arising from the Australian Securities and Investments Commission’s (ASIC) investigation into the operation of Jetsby Pty Ltd, as trustee of the United Investments Trust.
Mr Loveday was sentenced to 20 months imprisonment with a non-parole period of six months, then to be released on a good behaviour bond for 14 months, and to be under the supervision of a Corrections Officer for 12 months.
Mr Balacco was sentenced to 14 months imprisonment, to be released immediately upon entering into a bond and being supervised in the same terms as Mr Loveday.
Mr Balacco and Mr Loveday, both directors of Jetsby Pty Ltd, had each previously pleaded guilty to a charge of operating United Investments Trust, a managed investment scheme that was not registered as required under the Corporations Act 2001.
The United Investments Trust was wound up on ASIC’s application, and with the consent of Mr Loveday and Mr Balacco, on 13 September 2002. At that time, the Court appointed Mr Hugh McPharlin of Edwards Marshall, as liquidator of the scheme.
United Investments Trust received money from 94 investors in Australia, in particular, South Australia, and overseas. The investors comprised mainly of retirees and operators of self-managed super funds.
The scheme initially started as a share investment club. Later, the funds were invested in investment projects in New Zealand and the United States, resulting in losses of $5.8 million.
‘ASIC will not hesitate to take action against those who operate investment schemes contrary to the Corporations Act’, ASIC Deputy Executive Director of Enforcement, Mr Mark Steward said.
The charges were prosecuted by the Commonwealth Director of Public Prosecutions.
ASIC Website: Printed 01/06/2009
