Former CFO of Gold Coast-based MFS Limited charged with 26 counts of fraud over allegations of using investor money for own use

The former CFO of the collapsed $2.5 billion Gold Coast-based MFS financial empire has fronted court accused of obtaining millions of dollars of investor funds for his own use.

The former CFO of collapsed Gold Coast-based investment empire MFS Limited is facing fraud charges.

THE former CFO of the collapsed $2.5 billion MFS financial empire has fronted court charged with fraud for obtaining $4.6 million of investor funds for his own use.

Gold Coast businessman David Anderson appeared in the Southport Magistrates Court charged with 26 counts of fraud and was released on bail to reappear on September 2.

It came after the Australian Securities and Investments Commission brought criminal charges against him stemming from his actions while a director of a subsidiary of Octaviar Limited, formerly known as MFS Limited.

MFS, which was headed up by Michael King, grew rapidly into a corporate giant with interests in financial services, travel and leisure and childcare before its collapse.

Former MFS boss Michael King was ordered to pay $177 million in compensation to investors in 2017.

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Corporate watchdog Australian Securities and Investments Commission launched proceedings against the former MFS officeholders and a funds manager in 2009.

In 2017 Mr Anderson was disqualified from managing corporations for 25 years, fined $500,000 and ordered to pay $205 million in compensation to PIF.

Former MFS boss Michael King was ordered to pay $177 million in compensation.

The misappropriated funds were used to pay debts owed by other related entities in MFS Group.

Former MFS boss Michael King was ordered to pay $177 million in compensation to investors in 2017.

The criminal charges relate to allegations by ASIC that between 2012 and 2015 Mr Anderson dishonestly applied $4.611 million of funds from Octaviar Investment Holdings No 3 Pty Ltd (OIH3), a subsidiary of Octaviar Limited, for his own use.

ASIC said the charges were brought against him following an investigation into his conduct as director of OIH3 and other companies in the Octaviar Group.

The Commonwealth Director of Public Prosecutions is prosecuting the case.