Musician Craig Heath accused of property investment scam
Craig Heath is the “charming” musician who worked with country star Keith Urban and rock icon Rick Springfield. But a single mum and pensioner are among dozens of people who have accused him of conning millions of dollars.
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A musician who worked with country star Keith Urban and 1980s rock icon Rick Springfield is under investigation for allegedly conning millions from property investors.
Craig Heath is accused of running a scam that duped dozens of victims, and some lost their life savings.
He allegedly convinced them to invest in five property projects which all went bust, owing some people up to $500,000.
About a dozen alleged victims have made statements to police, who confirm it is an “ongoing investigation”. Those to lodge complaints include:
• A single mother with an autistic son who lost $200,000 in life savings;
• A pensioner, 68, with emphysema who is in danger of losing his home after he was allegedly defrauded of more than $700,000 in equity from his property; and
• A couple who successfully launched bankruptcy proceedings against Mr Heath after losing more than $220,000.
Mr Heath claims he “felt awful” for losing people’s money and wanted to pay it back.
“We want to get these people paid whatever we can in time,” Mr Heath said when approached at his Malvern East home.
The father of two said his dealings with investors were not a scam, he never did anything maliciously, and he had not broken any laws.
Mr Heath denied secreting the money to fund a lavish lifestyle or his music career.
“I’ve got no money in the bank. There’s none tucked away. There’s no cash hidden in a treasure chest anywhere,” he said.
“I haven’t had a holiday for 10 years. I haven’t recorded an album for five years. I’ve had to hire a scooter as I don’t have a car. So it’s not like everyone’s living a glamorous life.”
He said the money had instead gone in fees. “I lost it in interest fees that were like 50 per cent interest rates on second mortgages.
“These financiers come in and they charge astronomical interest rates and just bleed you dry. And I couldn’t sustain that. That’s why I probably should have stopped. There and then.
“But I thought, ‘If I keep going I’m going to get these people out’. It’s an investment. It’s not like we went to Crown casino.”
The single mother, who did not want to be named, considered Mr Heath a friend of 15 years whom she trusted. “Craig’s quite convincing and charming,” she said.
John Pedder claims he lost $200,000 after investing in a property development based on documents that contained false pictures from an unrelated project. A month after signing over his cash loan the company, Heathcorp, went into liquidation, and the money was gone.
“I couldn’t believe it,” Mr Pedder said. “We later learnt the loan was based upon forged documents.
“They didn’t own the property, and showed property with false photographs to entice us in.
“He would put up properties as security that he didn’t even own.”
Mr Pedder went to VCAT in a bid to get his money back, getting an order to take possession of a Carnegie property that was owned by Heathcorp.
Many other alleged victims spoke to the Sunday Herald Sun.
Mr Heath started Heathcorp with his father but it went into liquidation in October 2016. With creditors chasing him for some $4 million, Mr Heath was declared bankrupt the following year. The Australian Financial Security Authority then extended his three-year bankruptcy by five years.
Mr Heath’s partner, Catherine Webster, became director of a number of companies, including Icon Property Group, Makeland Homes, and Quantum Capital, when he was declared bankrupt.
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Now creditors have launched action in the Federal Circuit Court to make her bankrupt too, in a hope to reclaim some losses.
In a sworn affidavit filed with the court, Ms Webster said Mr Heath “was very insistent” she become director when his bankruptcy was imminent.
Mr Heath told the Sunday Herald Sun he was not acting as a shadow director. He instead said he was the operations manager, which is not in breach of his bankruptcy status.