Sterling First: ASIC hits Ray Jones, Simon Bell and Ryan Jones with dishonesty charges over failed schemes

The Federal watchdog has hit veteran promoter Ray Jones and two close associates with dishonesty charges over the failed Sterling First home lease-for-life schemes. Mr Jones and his senior lieutenant Simon Bell both appeared in Perth Magistrates Court on Friday morning to face 11 charges of dishonest conduct involving a financial product or service. His son and lease-for-life scheme promoter Ryan Jones also faced the court after being hit with 10 charges by the Australian Securities and Investments Commission. The charges come after an ASIC investigation stepped up in mid-2019 when the scheme collapsed, leaving about 100 pensioners and people approaching retirement facing the loss of their life savings and their leased homes. Sterling First promoted an innovative way for retirees to secure a lifetime lease over a property and have their rent paid by investing in a Sterling First trust company offering investment returns of at least 9 per cent. The Joneses were key players in developing the Sterling New Life scheme and then a replacement scheme set up in 2017 under a network of companies called Silver Link after regulators had raised concerns about the original structure. The Sterling First collapse prompted protests from people who feared being left homeless after punting their nest egg and any home equity on the failed lease-for-life model. Mr Jones’ lawyer Anthony Eyers on Friday asked that Mr Jones’ address not be read out in court while bail conditions were being confirmed. “He is concerned about publicity,” he said. The lawyers agreed the prosecutions should go straight to the Stirling Gardens Magistrates Court at its next hearing. Mr Eyers said Stirling Gardens was used for cases that would be tried in the Supreme Court. “It is starting off in the right place,” he said. Mr Eyers successfully asked for a long adjournment until February 7 to allow the completion of necessary disclosures. The court had originally mooted a January 24 adjourment. No pleas were entered. All three were released on bail totalling $100,000 with conditions including surrendering their passports, no overseas travel and giving Federal prosecutors at least seven days notice of interstate travel plans.