Property developer gets bail over $1.8m SMSF fraud

In a statement, ASIC said that George John Nowak had appeared in the Adelaide Magistrates' Court charged with 31 counts of deception and one count of dishonest dealings with documents.

This follows an ASIC investigation into Mr Nowak's conduct in dealing with members of SMSFs who were undertaking property purchases offered by companies of which he was a director, including EJ Property Developments Pty Ltd.

It is alleged that Mr Nowak misappropriated $1.8 million in SMSF monies by not holding funds in a designated account and by not applying those funds towards the intended property purchase, according to ASIC.

Mr Nowak was not required to enter a plea and was granted conditional bail.

The matter is listed for return to the Adelaide Magistrates' Court on 12 July.

ASIC noted that the charges of deception contrary to section 139(b) of the SA Criminal Law Consolidation Act 1935, and the charge of dishonest dealings with documents contrary to section 140 of the SA Criminal Law Consolidation Act 1935 each carry a maximum penalty of 10 years' imprisonment.