William O’Dwyer, director and founder of the Australian construction company Ralan Group, spent money of clients for personal holidays and investments in cryptocurrencies.
Chinese and Australian investors who investedmoney in this insolvent developer is now unlikely to be able to return their money, since according to the report of the audit firm Grant Thornton, the debts of the Ralan Group to creditors amount to $ 564 million, and the projects launched are unlikely to ever be completed.
Since 2008, the Ralan Group has accepted deposits frombuilding clients with an interest rate of up to 20%. The first signs that the company was experiencing financial difficulties began to appear in 2014, when money from the accounts of some projects began to be transferred to finance others. The result was that in July of this year, the Ralan Group ceased all activities.
According to analysts at Grant Thornton, betweenFrom 2016 to 2019, O’Dwyer withdrew large sums of money from the company's accounts, which he subsequently spent on personal needs, and also invested in cryptocurrencies. However, it is not reported exactly what amount was spent on cryptocurrencies and how successful these investments turned out to be.
Today, William O’Dwyer is accused offraud with financial reporting, in violation of the Law on Corporations and the provision of investment management services without proper registration.