Disgraced West Australian fund manager Chris Marco has officially launched an appeal against his 43 fraud convictions and 14-year prison sentence for operating one of the state's largest Ponzi schemes.
The Grounds for Appeal
Marco's lawyer, Luka Margaretic, has filed documents challenging both the conviction and sentence handed down last month. The appeal argues that the jury's guilty verdicts should be set aside as unreasonable and unsupported by evidence.
Regarding the sentence appeal, Marco's legal team claims Justice Natalie Whitby made two critical errors in her findings. They dispute the judge's conclusion that Marco lacked genuine belief in his investment strategy and challenge the finding that victims relied on his false representations when transferring funds.
The $253 Million Scheme
The 67-year-old former western suburbs fund manager was convicted for running the sophisticated fraud operation over almost eight years, beginning in early 2011. The court heard how Marco persuaded clients to invest a staggering $253 million while promising high returns from sophisticated private placements.
Instead of making legitimate investments, Marco simply pooled the money in his Westpac accounts and recirculated the funds, using new investor money to pay returns to earlier participants. While approximately $198 million was returned to clients in interest and redemptions, prosecutor Steven Whybrow successfully argued these payments were part of the ongoing deception.
Extravagant Spending Spree
While only $11 million was actually sent overseas for investment purposes, Marco splurged $21 million on luxury items including premium real estate, rare muscle cars such as a 1971 Ford XY Falcon GT-HO, and extravagant personal expenses.
His swanky Nedlands offices were famously decorated with suits of armour, reflecting the opulent lifestyle he maintained while defrauding investors. Six victims who participated in the trial suffered combined losses of $34.3 million.
Legal Fallout Continues
Justice Whitby described Marco's offending as extremely serious, persistent and large-scale, involving a gross breach of trust. The Australian Securities and Investments Commission shut down the scheme in late 2018.
Marco will be eligible for parole after serving 12 years of his sentence, when he will be 79 years old. His former executive assistant, Linda Anne Marissen, was acquitted of all 17 fraud charges against her.
Related litigation against Westpac and other associated cases remain before the courts as the legal fallout from one of Western Australia's most significant investment frauds continues to unfold.
