Former company director Bradley Silver to be sentenced for fraud

The family of an elderly man has told of his stress at losing his life savings, and say the sentence handed down today to the man responsible for a $4.39m fraudulent investment scheme is inadequate.

A FORMER company director who “callously manipulated” 12 victims in a $4.39 million fraudulent investment scheme will spend two and a half years in jail.

Bradley Keith Silver, 30, pleaded guilty to seven aggravated fraud charges and six counts of dishonestly using his company director’s position with intent to gain.

The offences arose out of unregistered management investment schemes run by Silver.

“This was not a crime of passion but a crime involving building trust, callous manipulation and deception,” Judge Deborah Richards said.

Judge Richards said the ripple effect of Silver’s actions had been enormous.

“People were terrified of being left homeless as a result of your actions,” Judge Richards said.

“Families have been torn asunder. People have been left with serious mental health issues, stress, depression, feelings of guilt over being duped by you.”

Bradley Keith Silver.

Some victims said they isolated themselves from family and friends because they felt shame.

Silver, who was 19 to 21 when the offending occurred, was not naive and knew he was acting dishonestly, Judge Richards said.

Silver created false documents and issued monthly statements to victims.

Judge Richards said $4,178,761 was deposited in bank accounts belonging to Silver over a three-year period.

Judge Richards sentenced Silver to a maximum eight years in jail.

She ordered he be released on parole after serving two and a half years behind bars, counting the 91 days already spent in custody.

Wayne Mahon, the son of one of Silver’s victims, the late Kevin Mahon, said of Silver’s sentence: “For what he did, it’s not long enough”.

The stress of losing his life savings took a heavy toll on elderly pensioner Kevin Mahon, who thought he would lose his house, before he had a massive stroke.

Mr Mahon, who later developed cancer and died in 2017, aged 83, had only wanted to invest $300,000, in the scheme.

But when he got the paperwork, he found he was signed up for more than $440,000.

“Dad was told he had to sell his house at Burleigh Waters,” Mr Mahon’s daughter, Michelle Watson, said.

“He got really sick. He was stressed.”

Michelle Watson and twin brother Wayne Mahon. Their late father Kevin Mahon was a victim of Bradley Silver's investment scheme.

Wayne Mahon, said their father sold most of his personal belongings and put his house, his only major asset, on the market, but it didn’t sell.

“He sold a truck, things he’d spent his whole life collecting,” Mr Mahon said.

“He rang up, crying, that he’d have to buy a caravan. I said no, I’ll give it to you. He went downhill fast.”

Mrs Watson said their father was a real gentleman, a very proud man, who felt he hadn’t protected their inheritance.

“We said at the time we didn’t care. We believe he had a massive stroke associated with stress, about a month after a deal with Westpac,” Mrs Watson said.

Crown prosecutor Jeff Hunter said Silver’s scheme involved a sophisticated marketing exercise and a protracted period of dishonesty.

Mr Hunter said it was designed to fool a bank and vulnerable investors, who did not see any of their money invested as they were promised.

People were induced to invest their own money or borrow from Westpac to invest.

Although investors were led to believe that their money was going into high performing investments, it was diverted to Silver and his family, Mr Hunter said.

Silver bought $1.6 million worth of properties in his name or those of family members.

“This was a sophisticated scheme, the rewards were high, the dishonesty of a high order, sustained over a substantial period,” Mr Hunter said.

“It involved taking advantage of some vulnerable individuals.”

Mr Hunter said Silver had an arrangement with a Westpac employee who had considerable authority to make loan decisions.

Investors who took out loans were provided with documents to show the money had been invested and the investments were performing at a rate to service the loans.

But once two companies went into liquidation the victims, many of whom were pensioners, were left to settle the loans.

Mr Hunter said victims were subjected to significant stress, because of their inability to pay off the loans.

Other investors were induced to invest their own money into high performing securities.