Kenneth Charles Grace: Goldsky manager to defend alleged Ponzi scheme

A hedge fund manager who allegedly collected funds from up to 50 people including Olympians and a former Lions captain will fight charges later this year.

A hedge fund manager accused of dishonestly involving more than 50 people out of $16 million in an alleged Ponzi scheme will defend charges against him at trial later this year.

Kenneth Charles Grace, the owner of Goldsky, is accused by the Australian Securities and Investments Commission of raising funds from Olympic swimmer Sam Riley, cyclist Robbie McEwen and former Brisbane Lions captain Simon Black from his Kingscliff based business.

ASIC allege between November 2014 and 2018 Mr Grace was the director of Goldsky Asset Management Australia Pty Ltd, Goldsky Global Access Fund Pty Ltd and Goldsky Investments Pty Ltd (Goldsky) as well as a US-based company, Goldsky Asset Management LLC where he represented to investors that their money would be invested and managed in a fund for trading.

It is further alleged Mr Grace used the funds to provide returns for existing investors and for the lifestyle expenses for himself and his immediate family and he did not apply the majority of the investment money to generate profits from trading as he claimed - more commonly known as a Ponzi scheme.

Mr Grace appeared in Tweed Heads Local Court on May 13 where he pleaded not guilty to eight counts of dishonest conduct in relation to financial product or service and one count of not holding an Australian financial services licence when required.

His barrister told the court there was a brief with hundreds of thousands of pages which could be managed in a higher court.

The case was adjourned to the Lismore District Court on June 20 for mention.

Originally published as Kenneth Charles Grace: Goldsky manager to defend alleged Ponzi scheme