West Perth native Jody Eidt admitted to defrauding friends and family of more than $1.2 million between 2013 and 2016 as part of a mortgage investment scheme.
Eidt entered guilty to eight counts of fraud over $5000 after soliciting friends and family with fraudulent investment opportunities. While employed at SRF Financial, a Hamilton mortgage and loan broker, Eidt told his investors their money would be used to bridge-finance clients on new home purchases and mortgages. Eidt told investors they would earn a nine per cent return on their principle investment while also receiving administration fees for each bridge loan in which their investments were being used.
After almost three years of managing their investments, Eidt emailed his investors stating that he suffered from a mental illness and their money was lost through his gambling addiction. Eidt turned himself into police claiming a gambling addiction and told officers he was no longer a licensed mortgage broker.
Eidt admitted to police that much of his business was fabricated and was a Ponzi scheme. His sentencing is scheduled for April 20.
Read more at Stratford Beacon Herald