Investors reject 20c-in-dollar Seabay repayment scheme

Three investors in Giuseppe Mercorella's failed ponzi scheme are unhappy with a settlement which would eventually give them 20c in the dollar.

Anthony and Teresa Marafioti of Richmond and Sergio Bordignon of Findon are claiming Carmine Misale, director of Seabay Investments, is personally liable to pay back $400,000 they invested at up to 3 per cent per month in what has been found to be an illegal scheme in 2003 and 2004.

Mr Misale's company on-lent about $18 million to Mr Mercorella's scheme which collapsed last year, leaving investors, including associates and a former member of the Gypsy Jokers motorcycle club, about $80 million out of pocket.

After the scheme collapsed, Seabay reached a deal with its creditors to pay them 20c in the dollar by March, 2009.

But the Marafioitis are arguing in the Supreme Court Mr Misale is liable for the debt, and want their money back.

He has applied to have the investors' statutory demand for payment dismissed.
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