ASIC investigation sees William O’Dwyer plead guilty

One time high-flying property developer William O’Dwyer, the former managing director of apartment developer Ralan Group, has pleaded guilty to six offences.

William O'Dwyer, Managing Director, Ralan Group at the sod turning ceremony for Ralan Group's $1 Billion project 'Ruby' at Surfers Paradise, Gold Coast

One time high-flying property developer William O’Dwyer, the former managing director of apartment developer Ralan Group, has pleaded guilty to six offences of the Crimes Act 1900 (NSW) following an Australian Securities and Investments Commission investigation.

The maximum penalty for each offence is ten years jail with a sentencing hearing listed for December 7 in the NSW District Court.

Based in Sydney, the Ralan Group, which at one stage was one of Australia’s largest private apartment developers, sold, developed, and managed real estate properties from 2014 to 2019 in several Sydney suburbs and later ventured into the Gold Coast.

In a media statement on Wednesday ASIC found that between about mid April 2015 and early June 2018, Mr O’Dwyer, by deception, dishonestly obtained for companies in the Ralan Group the ability to draw down on finance facilities totalling $251m.

The charges relate to loans advanced to 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 draw down on the loans could occur,” according to the ASIC statement.

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.

Approximately $132m was drawn down upon the facilities, with around $47m repaid by the time the companies in the Ralan Group went into administration in mid 2019.

A further amount is expected to be recouped by the lenders following their purchase and development of the Arncliffe property near Sydney airport.

The Irish-born Mr O’Dwyer first appeared in Sydney’s Downing Centre Local Court on July 25, 2023, pleading guilty to the charges on August 22 with a sentencing hearing listed for next month.

The matter is being prosecuted by the Commonwealth Director of Public Prosecutions following a referral from ASIC.

A report found that most of Mr O’Dwyer’s apartment buyers were Chinese-born paying deposits on apartments of 10 per.

Ralan Group entered voluntary administration in mid 2019 with the company placed in liquidation in March, 2020.

At one stage the liquidator of the companies, which were backed by Westpac and non-bank lender Wingate, Said Jahani at Grant Thornton, estimated that the Ralan Group owed unsecured creditors $323 million.

Mr O’Dwyer sold his Bellevue Hill mansion for $9.3m in 2021 following the collapse of Ralan. Set on 682sq m with city views, the Fairweather St home last traded in 2007 at $5.7m. O’Dwyer owned 1 per cent of the property while wife Joanne had 99 per cent.