Promoter of Ponzi scheme Courtenay House Sentenced to Three Years Imprisonment

The Australian Securities and Investments Commission (ASIC) has announced the third judgment regarding the Ponzi scheme Courtenay House. David Sipina, who was a former contractor and promoter of the Courtenay House investment program, was sentenced to three years' imprisonment to be served by way of an intensive correction order.

On December 20, Sipina pleaded guilty to two charges relating to his involvement with Courtenay House - aiding and abetting Tony Iervasi in the conduct of an unlicensed financial services business and handling of funds derived from participation in an unlicensed business.

In September Tony Iervasi, the former director of Courtenay House, was sentenced by the Supreme Court of NSW to 11 years' imprisonment and seven years' non-parole. Iervasi was the sole director and shareholder of Courtenay House, which operated a Ponzi scheme that raised $180 million from 585 investors.

As part of promoting Courtenay House, Sipina's role was to recruit and manage 215 investors. He marketed the investment scheme online between June 2015 and April 2017 and received approximately $3.9 million in illicit proceeds. Although he did not know that Courtenay House was a Ponzi scheme, he did know that the company was conducting business without a license.

Courtenay House claimed that client funds would be used to trade in the foreign exchange and futures markets, but only 3% of client funds were actually involved in trading.

ASIC Deputy Chairman Sarah Court said: “ASIC is committed to investigating people who engage in and profit from dishonest conduct. Mr Spina’s sentencing should be a deterrent to those who operate outside of the law and whose actions can have a detrimental effect on consumers who entrust their money with others.”