Ascent Investment mastermind cops 33 criminal charges

Michael Dunjey, the mastermind behind a $149 million alleged Ponzi scheme, has been charged with 33 criminal offences.

On May 9, the Perth Magistrates Court charged Dunjey, the director of Ascent Investment and Coaching, with 23 counts of fraud under section 409 of the Criminal Code 1913 (WA). These amounted to more than $4 million in investor funds.

Five counts relate to failing to act in good faith under section 184 of the Corporations Act 2001, amounting to about $2.5 million of investor money.

Another five counts relate to falsifying books and annual returns under section 1307 of the Corporations Act 2001.

In 2021, ASIC sought freezing orders against Dunjey, alleging at the time he operated without a licence and falsified financial records. He was also forced to surrender his passport and remain in Australia. Ascent owed some $149 million to clients and had $4 million in assets.

The following year, the Federal Court appointed Matthew Donnelly and Sean Holmes of Deloitte Financial Advisory as provisional liquidators of Ascent.

In 2023, the Federal Court then ordered Ascent to be wound up on just and equitable grounds, together with the managed investment scheme it operated.

Dunjey was the sole director and member of Ascent. April 2023 Federal Court documents show that it was "very likely that Mr Dunjey and Ascent operated a 'Ponzi' scheme."

In Ascent's 2020 financial statements and tax return, which was described as a "discretionary trust - investment activities", the company reported net income of $8.8 million and assets of $117.5 million.

ASIC also received a complaint from a contributor to Ascent who expressed concerns that Dunjey was operating a Ponzi scheme or a scam as early as 2017.

The criminal matter has been adjourned to July 4. This matter is being prosecuted by the Commonwealth Director of Public Prosecutions.

Each offence of fraud under the Criminal Code in Western Australia carries a maximum penalty of seven years imprisonment or 10 years if the person deceived is 60 years or older.

The maximum penalty for each offence of section 184 is 15 years' imprisonment and five years' imprisonment for each charge of section 1307 of the Corporations Act.