Property developer William O’Dwyer jailed for four years
He once headed one of Australia’s largest private property development companies but an ASIC investigation into fraud has culminated in jail for Ralan Group boss William O’Dwyer.
One time high-flying property developer William O’Dwyer has been sentenced by the District Court at Sydney’s Downing Centre to four years’ jail with a non parole period of two years and four months following an Australian Securities and Investment Commission investigation.
The former managing director of the Ralan Group had pleaded guilty to six offences contrary to section 192E of the Crimes Act 1900 (NSW). The maximum penalty for each offence is 10 years’ jail.
Between 2015 and 2018, Mr O’Dwyer, dishonestly obtained for companies in the Ralan Group the ability to draw down on finance facilities totalling $251m.
The Ralan Group developed, sold, and managed real estate properties in the five years to 2019 mainly in Sydney’s suburbs before venturing on to the Gold Coast where it proposed developing three large apartment towers.
In his sentencing remarks, District Court Judge Anderson said that the financial advantage obtained was “enormous” and that O’Dwyer’s conduct was ongoing and deliberate, and a calculated fraud designed to benefit himself.
ASIC deputy chair Sarah Court said “ … (the) penalty is significant and emphasises the seriousness of fraudulent activities, together with ASIC’s commitment to investigate and prosecute such cases, and the importance of holding those responsible accountable for their actions.”
The charges related to loans advanced to Ralan Group companies involved in residential development projects in Sydney, Arncliffe, Turramurra and Gordon.
As part of the loan agreements, the companies were required to satisfy lenders that pre-sale deposits paid by purchasers of residences in the developments were held in trust before drawdown on the loans could occur.
The Irish-born Mr O’Dwyer deceived the lenders into believing that the pre-sale deposits were held in a trust account, when in fact they had been loaned by the purchasers back to the respective development company for use as working capital.
About $132m was drawn down upon the facilities, with approximately $47m repaid by the time the companies in the Ralan Group went into administration in July 2019.
Mr O’Dwyer first appeared in the Downing Centre Local Court on July 25, 2023 and pleaded guilty to the charges on August 22.
The matter was prosecuted by the Commonwealth Director of Public Prosecutions following a referral from ASIC.
The Ralan Group, which at one stage was one of Australia’s largest private property developers, entered voluntary administration in 2020 and liquidator Grant Thornton estimated the group had unsecured creditors of $323m.
At one stage Mr O’Dwyer attempted to stave off the liquidation of the group by attempting to offer discount apartments to about 1600 creditors.
Mr O’Dwyer was forced to sell his Bellevue Hill mansion in Sydney’s eastern suburbs for $9.3m in 2021 following the collapse of Ralan. Set on 682 sqm with city views, the Fairweather St home last traded in 2007 at $5.7m.
Mr O’Dwyer owned 1 per cent of the property while wife Joanne had 99 per cent.
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