Victoria, Australia (July 5, 2017)
r Cymon Fontaine has been permanently banned from providing financial services or engaging in credit activity.
The ban follows an ASIC investigation, which led to Mr Fontaine pleading guilty to and being convicted of defrauding six clients of a total of $105,910.10 and causing a loss of $4500 to another client. Mr Fontaine was sentenced in the Southport District Court on 3 March 2017 to 4 years’ imprisonment for seven charges of fraud (see 17-050MR).
The ASIC investigation found that Mr Fontaine used his position as an authorised representative of Wyndam to obtain funds from clients to purchase secondhand timeshare credits. He then used these funds for his own purposes. Once discovered, Wyndham terminated Mr Fontaine’s employment. However, Mr Fontaine continued to defraud some clients even after his employment was terminated.
ASIC Deputy Chair Peter Kell said, ‘This kind of dishonesty is not tolerated by ASIC or the community.’
Wyndham is a developer and marketer of flexible, points-based holiday ownership products. Clients buy into different levels of memberships with Wyndham by buying ‘points’ or ‘credits’ from Wyndham. Depending on a client’s level of membership (determined by the number of credits the client has) they are allowed different levels of privileges and benefits, including using their credits to stay at Wyndham’s resorts and hotels or partner resorts or hotels.
Between 28 June 2011 and 1 July 2013, Mr Fontaine was an authorised representative and Corporate Upgrades Consultant for Wyndham Vacation Resorts South Pacific Limited (Wyndham), a financial services company selling time share interests in resorts and hotels.
SOURCE: Australian Securities & Investments Commission