A former strategy manager at suspended stockbroker BBY has been sentenced for aiding and abetting dishonest conduct.
Yat Nam (April) Yuen, of Sydney, NSW, who held various roles at BBY including manager of strategy, was charged in November 2023 with two offences contrary to sections 1041G(1) and 1311 of the Corporations Act 2001 and section 11.2 of the Criminal Code.
Following two guilty pleas in February 2024, she was convicted and received an aggregate sentence of two years and six months’ imprisonment to be served as an intensive correction order, including 100 hours of community service.
The sentence took into account Yuen’s plea and other mitigating factors resulting in a substantial discount.
At the time of the offences, an offence for contravening section 1041G(1) of the Corporations Act 2001 carried a maximum penalty for an individual of 10 years’ imprisonment or a fine of 4,500 penalty units.
Yuen will automatically be disqualified from managing corporations for five years and will be unable to be involved in the business of a market participant in connection with securities and futures markets.
BBY was a former stockbroking and financial services business that was placed into voluntary administration on 17 May 2015 and in liquidation on 22 June 2015 with significant client shortfalls. Its Australian financial services licence (AFSL) was cancelled by ASIC in June 2021.
In June 2014, Yuen instructed the transfer of $6,800,000 out of BBY’s Futures client segregated account, a client money account used for futures clients, to fund a margin payment owed by BBY to ASX Clear Pty Ltd.
Similarly, in March 2015, Yuen caused the transfer of $1,600,000 of client money out of BBY’s Saxo Buffer account, a client money account, and $350,000 out of BBY’s Futures client segregated account, also a client money account, to fund a corporate payment owed by BBY.
These transfers were in breach of BBY’s obligation to hold that client money on trust and were not repaid to the relevant client money accounts and contributed to the client money shortfall on BBY’s liquidation.
The matter was prosecuted by the Commonwealth Director of Public Prosecutions after a referral by ASIC.
ASIC’s investigation into BBY is ongoing.
