Media and information releases

04-134 Wattle administrator sentenced

Tuesday 11 May 2004

Mr William Ross Jackson, a former director of the Gold Coast company Spectrum Fund Administration Pty Ltd (Spectrum), has been sentenced in the Brisbane District Court in relation to charges brought by the Australian Securities and Investments Commission (ASIC).

Mr Jackson was convicted and released on his own recognisance in the amount of $3000 to be of good behaviour for two years. Mr Jackson had earlier pleaded guilty to six charges of being knowingly concerned in the promotion of prescribed interests, in contravention of the Corporations Act.

The six charges relate to Spectrum and six investors who lost at least $145,125 invested in the failed Wattle Scheme. Spectrum received trailing commissions from the Wattle Group of 36 per cent per annum on the funds it sourced from investors.

On 28 November 2003, Mr David Christopher Smith, Mr Jackson's co-director in Spectrum, pleaded guilty to the same six charges, and a further six similar charges.

Mr Smith was sentenced in the Brisbane District Court to a $5000 good behaviour bond for three years.

The matter was prosecuted by the Commonwealth Director of Public Prosecutions.

Background
The Wattle Group was an unlicensed investment scheme operated by Mr Geoffrey Robert Dexter, which raised more than $160 million from over 2700 Australian investors. The scheme involved Mr Dexter obtaining unsecured loan funds from investors on the promise of high rates of return, generally 50 per cent per annum.

ASIC took action to close down the scheme, and on 7 May 2001 Mr Dexter was convicted of multiple fraud charges and jailed for 10 years.

In addition to Mr Jackson, 14 other promoters of the scheme have been charged with similar breaches of the Corporations Act and have been dealt with by the courts.

Updated: 11/05/2004