On Thursday, the District Court in Adelaide sentenced Mercorella, who pleaded guilty to 13 offences under the Corporations Act, to five years imprisonment with a non-parole period of two-and-a-half years.

The first charge relates to the unlawful operation of an unregistered managed investment scheme by Mercorella, in which he raised about $215 million from investors. The scheme resulted in investors being owed a total of $75.8 million.

In addition, he was sentenced on three charges of dishonestly by using his position as an Entek director to obtain more than $1 million for his own advantage.

Nine charges related to the dishonest use of his position as a director of Lion Energy to obtain $2.16 million for his own advantage.

In sentencing Mercorella, the court took into account his admission for 24 charges relating to his failure to disclose his acquisition or sale of relevant interests in various share parcels of both Entek and Lion.

ASIC enforcement executive director Jan Redfern said the sentence demonstrated the commission’s commitment to taking strong enforcement action against those who misused their positions for their own benefit.

“Those who act dishonestly and cause significant loss to consumers will be pursued with the full force of the law,” he said.

“People contemplating investment decisions should ensure that they are being advised by licensed advisors and that the investment product is offered in accordance with the law.”