DISGRACED Chartwell Enterprise boss Ian Rau was today jailed for 31 months in the Supreme Court over the Geelong company’s $80 million demise.
The fraudster pleaded guilty to several dishonesty charges after the share trading company collapsed in April 2008 leaving investors with nothing.
In a bid for a reduced sentenced, Rau signed an undertaking in court that he would be “full and frank” when he gives evidence against former business partner Graeme Hoy,
who has pleaded not guilty to more than 200 fraud charges.
Rau was in charge of the trading while Hoy had the role of luring new investors to the business that operated as a Ponzi Scheme – one investor’s money used to pay another investor’s interest.
Investors were promised returns of up to 80 per cent depending on how many people they recommended and how much cash they poured in.
More than $21 million was invested in Chartwell between 2007 to 2008 but only about $429,000 was traded.
Rau used investors’ money to renovate his Newtown mansion, while it’s alleged Mr Hoy used the cash to buy a luxury yacht and Rolls Royces.
Justice Terry Forrest described Rau’s actions as disgraceful.
“You buried your head in the sand and hoped Mr Hoy would sort it out,” Justice Forrest said.
Rau had pleaded guilty to eight charges, including counts of providing false information to investors and carrying on a financial services business without a licence.Rau will serve 18 months.
He and Graeme Hoy ruined many lives, some even committed suicide,here are some Reader Comments
This goes to show, CRIME DOES PAY. I too would steal over 21million if I knew I was only going to
serve 18months of jail. Another of many many cases of where justice has NOT been served and the
victims are worse off than the crooks.
Posted by: TDS of Geelong 4:10pm today
Comment 12 of 12
Posted by: Mark of Geelong 1:05pm today
Comment 1 of 12
Jailed for 31 months, will serve 18 months??
obviously Rau is not being held accountable for his actions. Karma will bite him in the butt. I
would not want to have to look in the mirror if I had ruined so many lives.
Posted by: Just another sucker of Highton 3:11pm today
Comment 11 of 12
How many families have been destroyed by suicide after people lost their life savings.
Unfortunately they all have a life sentence. Should have been more serious prison term.
Posted by: Life sentence of Geelong 2:51pm today
Comment 10 of 12
Although the investors were lured by their own greed some of them lost 30 or 40 years of savings but
this parasite will be walking the streets again in 18 months.If only several hundred thousand of the
21 million was traded where did the rest go? Hidden away for use after the pathetic jail term is
served,smells of Clarke and Farrow all over again
Posted by: w brown of geelong 2:12pm today
Comment 9 of 12
Unbelievable! He has ruined so many peoples lives and knew exactly what he was doing, I am enraged
that he has got off so lightly, where is the justice? All the other people the next level down
should also be prosecuted for helping get investors in, we were told it was a completely legit
investment company, and had no idea that it was shonky. May karma deal him and Hoy what they
deserve, the justice system sure isn’t.
Posted by: Affected by his crimes of Geelong 2:11pm today
Comment 8 of 12
31 months you have got to be joking. What more can you say, this sentence is a disgrace. He is
basically getting away with it.
Posted by: Rodney of Newtown 1:59pm today
Comment 7 of 12
It is great to see some form of justice meted out to white collar criminals such as Rau. The only
disappointing aspect is the leniency of the sentence. How does 34 months in jail equate to those
many people whose lives have been destroyed as a result of the greed and criminality of Mr. Rau and
his colleagues. In simple terms it doesn’t!
Posted by: rod smyrk 1:40pm today
Comment 6 of 12
How does the justice system work. 31 months but out in 18 months for stealing $80 million and
destroying so many lives. And no doubt when he gets out, all his share of the money will be waiting
for him. It should have been more like 31 years and out in 18 years.
Posted by: Paul of Geelong 1:30pm today
Comment 5 of 12
Oh really, only 31 months! Bit soft! Nevertheless, I sincerely hope he is also banned from having
any involvement or similar employment roles upon his release.
Posted by: More Deserved of Geelong 1:27pm today
Comment 4 of 12
18 months for $80mil, worth the risk! Victims (some may say suckers) must be happy with the
Posted by: Phil of Grovedale 1:15pm today
Comment 3 of 12
Rau gets out in 18 months, while those investors who have lost their life savings; many with little
or no chance to regain them; suffer for life. If this offence is not worth at least 10 years, then
what is? The legal system lets us all down again.
Posted by: Lock him away of Geelong 1:09pm today
Comment 2 of 12