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Businessman in hot water after paying himself $47k

18 April 2019 1 minute readShare

A South Australian restaurateur has landed himself in trouble after ASIC found that he had pocketed a portion of the sale of his company.

Restaurateur Gaowei Shi, of Highbury, South Australia, has pleaded guilty to one charge of falsifying company books.

An ASIC investigation found that Mr Shi, director of The Crane Japan Restaurant (SA) Pty Ltd, a restaurant in Glenelg, South Australia, had redirected $47,000 from a purchase and sale agreement in December 2015 to sell assets of the company to East and West Venture Pty Ltd for $100,000.

Mr Shi redirected approximately $47,000 of the sale proceeds to his personal account.

ASIC found that Mr Shi falsified the company’s bank statements to show that the $47,000 was deposited into the company’s bank account.

The falsification was discovered after the company entered liquidation on 9 March 2016 and the liquidator, Peter Lanthois of DuncanPowell, reported Mr Shi’s conduct to ASIC.

At the time of liquidation, the company owed creditors approximately $328,000.

For falsifying company books, Mr Shi can face a maximum penalty of two years’ jail time under section 1307 of the Corporations Act.

The matter has been adjourned to 16 May 2019 for sentencing.

Businessman in hot water after paying himself $47k
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