Chartwell ruined me

Alex de Vos
Witnesses have begun telling court their heart-rending stories of losing life savings in the $60 million collapse of a Geelong investment company.
One investor, whose name was suppressed under a court order, told Geelong Magistrates’ Court this week she was forced to cancel surgery after failing to receive a return on her $185,000 investment.
The witness said the losses reduced her to tears and inflicted a “great deal of stress”.
Former Chartwell Enterprises director Graeme Hoy and ex-company secretary Ian Rau faced court on a combined 41 criminal charges.
The charges included inadequate licensing, dishonest conduct, using false documents, obtaining financial advantage by deception, dishonestly obtaining property to the value of $26 million, dishonest conduct and dishonest use of a position in the company.
In a witness statement to police, the investor said she had contacted Hoy in November, 2007, demanding a September-quarter return so she could pay for her operation.
“Hoy said he guaranteed we would receive the interest payment by November 20, 2007,” the witness said.
“On November 20, 2007, I had not received any of the interest payment for the September quarter.
“I telephoned Hoy every day for about four days and also emailed him but he did not answer.”
Hoy allegedly used excuses such as he was “having trouble” with his computer and phone and had not received her messages.
“There was nearly always a reason given for the late payments,” the investor told the court.
“Sometimes this was communicated to us by email. For example, Hoy was ill or (there was a) two-week closure of brokers over Christmas or computer or mobile phone problems.”
The investor told the court her brother, who had invested $75,000 in Chartwell Enterprises, was also having difficulty getting his money back.
In January, 2008, Rau allegedly told the witness Hoy was ill and that he would take over the director’s role.
“(Rau) showed me around the Chartwell offices and expressed to me how proud of the fact that because of his successful trading, the Chartwell analysis office space had expanded four-fold,” she said.
“I really don’t think Rau realised the impact of them not returning our interest and capital was having on our lives.”
Hoy pleaded not guilty before magistrate Rosemary Carlin on Wednesday morning.
The committal hearing for Rau was continuing when the Independent went to press.