ASIC instigated proceedings against Queensland man Christopher Edward Eric Skelly on one count of fraud relating to the 2015 collapse of WA business C & G Group Industries Pty Ltd.
The regulator said in a public statement that C&G went into administration on 28 April 2015 and subsequently went into liquidation on 29 May of that year.
At the time of its collapse, the business owed creditors $4,089,386.
According to ASIC, it began investigating the company and Mr Skelly after it received a report from liquidators Hall Chadwick.
“Mr Skelly deceived a factoring agency by emailing them an invoice and other documents that created the false impression that monies were owed to C&G by debtors, when in fact they were not,” ASIC said.
“Relying on those documents, the factoring agency paid C&G a total of $529,380.72.”
Standing trial in March in the Perth District Court, Mr Skelly was found guilty of intent to defraud by deceit or fraudulent means and gaining a benefit, for his actions which ASIC said were carried out between 11 December 2014 and 12 January 2015, just months prior to the company’s collapse.
Mr Skelly will be sentenced at an adjourned hearing on 17 April 2019.