Seven years’ jail has been handed down by a court to a former liquidator, after he pleaded guilty to three counts of fraud worth $800,000.
ASIC said in a statement that Queensland man David John Leigh had been sentenced to seven years behind bars by the Brisbane District Court, and will be eligible for parole after he has served 22 months.
According to the companies regulator, an investigation was launched in February 2018 following a tip-off by the firm he worked for at the time.
That investigation, ASIC said, revealed that Mr Leigh had “dishonestly redirected $800,000” from the external administration bank account of Neolido Holdings Pty Ltd, of which he was the co-liquidator, into a separate bank account he personally controlled.
The transfers were found to have been made between 25 July and 9 November 2017.
South Brisbane-based Neolido was wound up in November 2005 following a court order obtained by ASIC, and Mr Leigh had been appointed co-liquidator in October 2010.
“He went on to use the funds for his own purposes,” ASIC said.
He then had his registration as a liquidator cancelled in February this year, and that no other registered liquidators could employ him to do any such function on their behalf for eight years, beginning from 22 February 2019.
ASIC quoted the judge as stating that Mr Leigh “committed a significant breach of trust as a court-appointed liquidator” and had been “uniquely positioned to know what legitimate avenues were available in [his] circumstances but chose not to choose those options”.
“Liquidators must act honestly in the protection and administration of other people’s money,” ASIC Commissioner John Price said in response to the verdict.
“ASIC will continue to act against dishonest conduct and hold offenders to account.”
Adam Zuchetti is the editor of My Business, and has steered the publication’s editorial direction since early 2016.
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