04-144 Albury solicitor jailed
Tuesday 18 May 2004
Mr Peter Lyle Sharp, a former solicitor from Albury, New South Wales (NSW), was sentenced today in the NSW District Court to five years jail with a non-parole period of three years in relation to 39 charges brought by the Australian Securities and Investments Commission (ASIC).
Mr Sharp had earlier pleaded guilty to 16 charges under the Corporations Act of making improper use of his position as the director of Tietyens Investments Pty Ltd to gain an advantage directly or indirectly for himself, and 23 charges under the Crimes Act of New South Wales, of concurring in the making of false statements with intent to obtain a financial advantage.
The charges related to Mr Sharp’s involvement in a failed mortgage scheme operated by Tietyens Solicitors in Albury under the name of Tietyens Investments Pty Ltd. The principal mortgage was over a development at Burwood East, Victoria.
The Corporations Act charges related to $760,000 in fees, received by Tietyens Solicitors or entities associated with the partners, which were not approved by contributors to the mortgage practice.
ASIC also alleged that Mr Sharp breached his duty to Tietyens Investments by entering into a contract whereby his firm and its nominee company would reap substantial fees from the lending of contributories’ money. These fees included a Tietyens Solicitors Contingency Fund Fee of $18,000 per month, a Tietyens Solicitors Loan Fee of $50,000 per month and a fee of $6 million to be paid to Tietyens Investments at the successful conclusion of the project.
The Crimes Act NSW charges relate to a sample of 23 contributors who had invested over $1 million, from a total of approximately 900 contributors residing predominantly in Albury and Melbourne.
ASIC alleged that Mr Sharp knowingly concurred in representations made to contributors that the loan-to-value ratio of security taken for their loans would not exceed 66 per cent. The valuation was required in order to meet the NSW Law Society leverage ratio requirements of 66 per cent of current market valuation, however, the actual market value of the properties was substantially less than represented by Mr Sharp.
Tietyens Solicitors collapsed in December 1996 after the Law Society of NSW placed its mortgage arm under Administration. Mr David Lombe, of Deloitte Touche Tomatsu, was appointed Liquidator of Tietyens Investments.
The two mortgages in Narooma and Burwood East left the mortgage practice with a deficiency of approximately $36 million. This deficiency was fully funded by the Law Society of NSW Fidelity fund, which reimbursed all contributors to the scheme.
The Commonwealth Director of Public Prosecutions prosecuted the matter.
ASIC Website: Printed 02/09/2010
