Former Ralan Group managing director deceitfully secured finance facilities totalling $251 million
After admitting guilt to six counts of obtaining a financial advantage through deception, former Ralan Group managing director William O’Dwyer has been sentenced to immediate imprisonment.
The District Court of NSW on Friday handed O’Dwyer a four-year prison term with a non-parole period of two years and four months. Under section 192E of the Crimes Act 1900 (NSW), dishonestly obtaining a financial advantage through deception carries a maximum penalty of 10 years imprisonment.
The charges against O’Dwyer stem from his actions between April 17, 2015, and June 6, 2018, during which he deceitfully secured finance facilities totalling $251 million for companies within the Ralan Group. These funds were earmarked for residential projects across Sydney, including Arncliffe, Turramurra, and Gordon.
Under the loan agreements, the companies were obligated to demonstrate to lenders that pre-sale deposits from property purchasers were securely held in trust before accessing the loans. However, O’Dwyer misled lenders into believing these deposits were held in trust when, in reality, they were loaned back to the development companies as working capital.
Approximately $132 million was drawn down from the facilities, with around $47 million repaid by the time the Ralan Group entities went into voluntary administration in July 2019. Additional funds are anticipated to be recovered by lenders through the acquisition and development of the Arncliffe property.
“The penalty is significant and emphasises the seriousness of fraudulent activities, together with our commitment to investigate and prosecute such cases, and the importance of holding those responsible accountable for their actions,” said Sarah Court, deputy chair of the Australian Securities & Investments Commission.
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