A former director of a company associated with the failed Wattle Group was last week convicted in the Brisbane District Court on 12 charges of being knowingly concerned in the promotion of interests in contravention of the Corporations Act.
David Christopher Smith, a former director of Brisbane-based company, The Fund Administrators Pty Ltd (TFA) and Gold Coast company, Spectrum Fund Administration Pty Ltd (Spectrum) was convicted and released on his own recognisance on a $5,000 three year good behaviour bond.
The charges were brought by theAustralian Securities and Investments Commission(ASIC) and prosecuted by the Commonwealth Director of Public Prosecutions.
Six of the charges related to TFA and six investors who lost approximately $133,750 invested in the Wattle scheme.
The court was told that TFA had received trailing commissions from the Wattle Group of 40 per cent per annum of funds sourced from investors.
The other six charges related to Spectrum and six investors who lost approximately $178,108 invested in the Wattle scheme, with Spectrum receiving trailing commissions from Wattle Group of 36 per cent per annum on funds it sourced.
Graeme Charles Coote, Smith’s co-director in TFA has previously pleaded guilty to eleven similar charges, and will be sentenced in the Brisbane District Court today. A co-director in Spectrum, William Ross Jackson has previously pleaded guilty to six similar charges and is due for sentence in January.
Last week’s conviction follows on from those recorded against directors of other companies associated with the multi-level unlicensed investment scheme closed down by ASIC in 2000.
