media release (24-288MR)

Third person sentenced for Courtenay House misconduct

Published

David Sipina of Prairiewood NSW, a former contractor and promoter of Courtenay House investments, has been sentenced to three years’ imprisonment, to be served by way of an intensive correction order, for his role in the unlicensed Courtenay House financial services business.

On 20 December 2024, Mr Sipina pleaded guilty in the Coffs Harbour District Court to two charges related to his involvement in the Courtenay House matter. The first charge related to aiding and abetting Tony Iervasi to carry on an unlicensed financial services business contrary to s 11.2(1) of the Criminal Code (Cth) and s 911A(1) of the Corporations Act 2001 (Cth), and the second charge related to dealing with money that he believed to be proceeds of crime worth $1 million or more, contrary to s 400.3(1) of the Criminal Code (Cth), derived from his involvement in the unlicensed financial services business.

In May 2017, liquidators were appointed to the Courtenay House companies and the director, Mr Iervasi, was restricted from leaving Australia. On 8 November 2022, Mr Iervasi pleaded guilty to five criminal charges (22-307MR). Four of those charges included engaging in dishonest conduct between 13 December 2010 and 21 April 2017 in running a Ponzi scheme through the Courtenay House companies, in relation to $180 million raised by the Courtenay House companies from around 585 investors.

Mr Sipina’s role in the scheme was to recruit and manage 215 investors, and market the scheme both online and in person between June 2015 and April 2017. For his participation, Mr Sipina received approximately $3.9 million in commissions which were proceeds of crime. Mr Sipina was not aware that the Courtenay House businesses were a Ponzi scheme, but he knew they were providing unlicensed financial services advice since at least 24 June 2015.

ASIC Deputy Chair Sarah Court said, 'ASIC is committed to investigating people who engage in and profit from dishonest conduct. Mr Spina’s sentencing should be a deterrent to those who operate outside of the law and whose actions can have a detrimental effect on consumers who entrust their money with others.’

Mr Sipina is the third person to be sentenced for criminal offences relating to Courtenay House.

The matter was prosecuted by the Office of the Director of Public Prosecutions (Cth) (CDPP) after an investigation and referral by ASIC.

Background

Mr Sipina was first charged on 21 February 2023 (23-036MR) and pleaded guilty to the charges on 20 March 2024 (24-050MR).

The maximum penalty at the time of the offending for carrying on a financial services business without an Australian Financial Services license was two years’ imprisonment, a fine of $34,000, or both. For dealing with proceeds of crime worth $1 million or more, believing it to be proceeds of crime, the maximum penalty is 25 years’ imprisonment, a fine of $255,000, or both.

The Courtenay House companies appointed liquidators on 16 May 2017 (Courtenay House Key Matters page). 

On the application of ASIC, the Supreme Court of NSW made interim orders on 1 May 2017 against Mr Iervasi, Courtenay House, Courtenay House Trading Group (and others) by consent.

These orders prevented those parties from carrying on a financial services business in Australia and limited the extent to which they could deal with their cash and other assets. ASIC sought these orders to preserve funds that might be available for the benefit of investors in the Courtenay House companies who had lost money and to prevent these companies from accepting further funds from investors.

The liquidators of Courtenay House Capital Trading have distributed dividends of 28 cents in the dollar. The liquidation process is ongoing.

On 8 May 2023, former Courtenay House contractor, Athan Papoulias, was sentenced to two years’ imprisonment to be served by way of an intensive corrections order for his role in the unlicensed financial services business. As part of his sentence, Mr Papoulias was ordered to complete 120 hours of community service (23-118MR).

On 2 September 2024, the sole former director of the Courtenay House companies, Mr Iervasi, was sentenced to 11 years’ imprisonment for charges relating to operating the Ponzi scheme (24-193MR).

Media enquiries: Contact ASIC Media Unit