The Australian Securities and Investments Commission (ASIC) conducted an investigation, with charges then laid against Paul Grant Stuart - also known as Paul Grant Stewart.
ASIC alleges that Stuart placed ads seeking investment in Infinet Services Pty Ltd (Infinet) and Ostor (No.2) Pty Ltd (Ostor). According to ASIC, the investment was claimed to be for operating the Internet start-up, and also for a college for international students.
ASIC alleges that its investigations revealed that the AU$35,000 invested in Infinet and Ostor was used for purposes other than funding operation of the companies.
Stuart has been convicted on two counts of cheating and defrauding investors, under the New South Wales Crimes Act.
Stuart is due to be sentenced on May 7 for earlier convictions; on one count of making a false statement to ASIC; and five counts of managing a company whilst a disqualified person.
Allen Turton, director of enforcement at ASIC, told ZDNet Australia that he was unable to comment further prior to Stuart being sentenced.
