Andre Langos and Sam Smith plead guilty over $6m fake property investment scheme
A dodgy property scheme took $6m out of five unsuspecting elderly victims – with two men now pleading guilty and awaiting sentence.
A group of unsuspecting elderly people were “misrepresented by omission” when they were collectively left $6m out of pocket after a fraudulent property investment scheme, a court has heard.
Fraudsters Andre Bernd Werner Langos, 43, and Sam Smith, 57, appeared in the District Court on Friday where they were arraigned for sentence after defrauding $6,043,000 from five clients over a 16-month period,
Langos, of Fullarton, pleaded guilty to 14 counts of aggravated deception and one count of deception, while Smith, of Brighton, pleaded guilty to six counts of aggravated deception and one count of deception.
It is understood Mr Smith was involved as an accountant while Mr Langos was alleged to be the investor.
“(Smith) maintains he did not expressly make representations as to how the money was to be invested, however he’s failed to state the purpose for which the funds would be used by Mr Langos,” prosecution submitted.
“Mr Smith transferred the funds on these particular accounts to Mr Langos after receiving it from the relevant persons. They were electronic transfers.
“The admission, as to the purpose of the funds, was a deception to the victims given Mr Smith was aware that the deception had occurred in circumstances where the victims were aware Mr Smith had previously made investments in property.”
On Friday, the court heard four of the victims were over the age of 60.
Federal Court documents revealed Mr Langos was forced into bankruptcy by those four victims.
At the time of Mr Langos’s arrest, police alleged he was running a fake property scheme and accepting investments he would then spend elsewhere.
“None of the money provided to the man (Mr Langos) has been recovered,” a SAPOL spokesman previously said.
“It will be alleged that the man committed the deceptions by obtaining money from the victims for a property investment scheme the man was promoting and then associated fees to release the invested money.
“It will be alleged that there was no property investment scheme and the man used the money for other purposes.”
On Friday Sam Abbott KC, for Smith, said his client’s offending stemmed from a “misrepresentation by silence – by omission”.
Smith, the court heard, deceived his victims by “holding out a misrepresentation” that funds advanced – namely property – would be used for the “purpose of investment”.
By doing so, the court heard, he “dishonestly benefited” himself or “dishonestly caused a detriment” to his victims.
“They (the victims) understood the previous basis for investments, and he had not said anything to say it was going to be anything other than that,” Mr Abbott said.
Craig Caldicott, for Langos, told the court his client “accepted” he had received $6m.
“There’s no disputing that the funds came from Mr Langos and that they were invested in contracts of differences,” Mr Caldicott said.
The pair will return to court in February for submissions.
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Originally published as Andre Langos and Sam Smith plead guilty over $6m fake property investment scheme
