Mr Michael Cay, 39, of Greenvale, Melbourne, was sentenced in the Melbourne County Court to four years imprisonment following an investigation by ASIC. Mr Cay must serve three years before he is eligible for parole.

Mr Cay, who was the operator of finance and mortgage broking firm, Jewel Financial Services Pty Ltd (Jewel), which is now in liquidation, pleaded guilty to four counts of obtaining property by deception and one count of obtaining a financial advantage by deception.

Mr Cay admitted that he deceived several investors of $475,149.07 to invest with Jewel. Mr Cay told the investors that this money was to be used by other Jewel clients allegedly seeking short-term loans. Mr Cay also told the investors that the loans would be secured either against the borrowers’ property, or property owned by Jewel. Neither of these representations occurred.

Mr Cay was also ordered to pay $381,600 compensation to victims.

The Victorian Court of Appeal dismissed the appeal against the sentence of Mr Michael Cay in November 2010.

(Source: ASIC Press Release 12/12/08  & 17/11/10 )

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