Remedy Housing officials, Brent Smith, Mahmoud Khodr and Fue Mano have been convicted of dishonesty offences for their role in promoting interest free mortgages offered by Remedy Housing.
Following a four-week trial in the County Court of Victoria, a jury found that between 2019 and 2021:
- Brent Lindsay Smith of St Albans, Victoria, was guilty of 7 counts of dishonestly using his position as a director of Remedy Housing,
- Mahmoud Khodr of Melbourne, Victoria, was guilty of 2 counts of dishonestly using his position as a director and officer of Remedy Housing,
- Fue Heidi Mano of St Albans, Victoria was guilty of 11 counts of dishonestly using her position as an officer of Remedy Housing.
ASIC Chair, Joe Longo, said, 'The jury's decision in this case demonstrates the community's concern with deception of this scale. This prosecution demonstrates ASIC's commitment to ensuring dishonesty in the credit and financial services industry is penalised.'
Mr Smith, Mr Khodr and Ms Mano dishonestly represented to consumers that:
- Remedy Housing would provide consumers with an 'interest-free mortgage' and title to a home within 12 months, upon payment of a deposit of at least $10,000,
- if Remedy Housing could not provide an 'interest-free mortgage' to the consumer within 12 months, the deposit would be refunded in full,
- Remedy Housing was financed by overseas investors, including financing from former Samoan international rugby union player Trevor Leota.
Trevor Leota was not charged in relation to this offending.
Remedy Housing had no investors or funders, never provided any mortgages, and the funds it acquired from customers' deposits were used to operate and promote the scheme and transferred to the personal accounts of Mr Smith and Mr Khodr.
The matter was prosecuted by the Office of the Director of Public Prosecutions (Cth)(CDPP) following an investigation and referral by ASIC.
A sentencing hearing has been scheduled for 9 September 2025.
Background
The maximum penalty for each offence of dishonest use of position as a director or officer is up to 15 years' imprisonment and/or a fine of up to $765,000.
Remedy Housing was operated by Mr Smith and Mr Khodr as director and secretary respectively. Ms Mano was an officer of the company who was involved, together with Mr Leota, in promoting the business to consumers, primarily in the Pacific Islander communities in Australia and New Zealand.
On 17 June 2021, ASIC moved to shut down Remedy Housing and successfully obtained interim orders and injunctions from the Federal Court against Mr Smith, Mr Khodr, Mr Leota and Remedy Housing (21-149MR).
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