Kenneth Charles Grace of Goldsky pleads guilty to five criminal charges amid Ponzi allegations

The court case of a Kingscliff boss of an alleged $25m Ponzi scheme, who used investors’ money for his stepdaughter to take a private jet to get a boob job, has taken a remarkable turn.

The Kingscliff boss of an alleged $25m Ponzi scheme, who used investors’ money for his stepdaughter to take a private jet to get a boob job, could face more than a decade in jail after pleading guilty to criminal charges.

Kenneth Charles Grace, aka Ken Grace, was charged with eight counts of engaging in dishonest conduct and one count of operating a financial services business without a licence in April 2021.

This week, he pleaded guilty to five of the dishonest conduct charges relating to his three Goldsky investment companies.

He had previously denied he had stolen from investors or used their funds as his own.

Ken Grace and wife Jane Grace appear at the Federal Court of Brisbane in February 2020 after ASIC alleged they spent investors cash.Picture: Richard Gosling

The Goldsky group raised money from investors including swimmer Sam Riley, cyclist Robbie McEwen, former swim coach Scott Volkers and Brisbane Lions great Simon Black.

ASIC successfully applied to freeze and appoint receivers to the assets of Grace and his three Goldsky investment companies in 2018, and liquidators were appointed in 2019.

Other notable sport stars, including boxer Jeff Horn and world champion surfer Joel Parkinson, were also drawn into the saga by supporting a charity started by Grace and his wife Jane.

There was no suggestion of any wrongdoing by the sports stars.

Jane Grace (centre) with cyclist Stuart O’Grady, surfer surfer Joel Parkinson, cyclist Robbie McEwen and boxer Jeff Horn launching the charity. Picture: Mike Batterham

During a Federal Court hearing on the matter, Grace revealed some investor money had been spent flying members of his family via private jet from the Gold Coast to Sydney, where his 18-year-old stepdaughter underwent a breast enlargement.

There is no suggestion of any wrongdoing by the stepdaughter.

A report filed by the receiver of the Goldsky companies in earlier court proceedings said $115,502 of investors money was spent on cosmetic surgery by the Grace family.

A separate Brisbane Supreme Court case in 2019 found the Goldksy companies had been operating without a licence, with documents in that case revealing millions of dollars were moved from company bank accounts of the failed hedge fund into a personal account of the director and his wife.

Court documents from that case said ASIC investigators discovered about $16m from 56 investors had gone into Goldsky’s three bank accounts and been moved around between them.

An investigator found about $1m in “suspicious transactions” from the Goldsky accounts including payments to family members, cosmetic treatments, jewellery and accessories, restaurant bills and clothing purchases.

The court heard Goldsky investors paid about $60,000 for Ken Grace's step-daughter Zoe Marzin, 18, to get a breast augmentation. Picture: Instagram

In the current case, ASIC alleges between November 2014 and October 2018, Mr Grace represented to investors their money would be invested in a managed fund which was operated by Goldsky and used for trading.

ASIC alleges Mr Grace did not apply the majority of investor money to investment activity and those that were used for trading did not generate the profits he represented to investors.

ASIC further alleges funds were used to pay returns and redemptions to existing investors and were also used to pay for the lifestyle expenses of Grace and his family.

A date for sentencing on the five guilty pleas is yet to be set, and the case is set for further mention in Sydney District Court on May 26.