A former alternate-director of agribusiness operator Bustan Australian Holdings has been sentenced to three years imprisonment, with a minimum of 12 months, in the County Court of Victoria.
Mark Timleris, of South Melbourne, pleaded guilty to four charges brought by the Australian Securities and Investment Commission (ASIC), following investigations by the regulator which found him guilty of falsifying records relating to the company’s commodity trading in legumes, grain and wool.
It was found that Timleris had falsified records, materially overstating the market value of these assets to its lenders HSBC Bank Australia and Rabo Australia, enabling the continuation of a syndicated banking facility.
The sentencing judge, Judge Felicity Hampel, said: “Dishonest commercial activity of this type cannot be countenanced.
“Conduct such as this must be punished so as to deter others from corrupting subordinates.”
ASIC’s executive director of enforcement, Jan Redfern, said that while Timleris’ early guilty plea along with his cooperation and remorse had been taken into account by the Court, his jailing sent a strong message to company directors engaging in “misleading and deceptive behaviour”.
The investigation was instigated after it was alleged that the Australian company officers misled the United Arab Emirates-based officers, shareholders, auditors and creditors over the financial performance of the company. It was found that one financial report issued in 2001 was materially false by at least $5.966 million.
ASIC’s investigation is continuing.
