A convictedexecutive has had his sentence upheld in the High Court following the dismissal of his appeal against five charges of fraud to the value of over $7 million made by theAustralian Securities and Investments Commission(ASIC).
Robert James MacLeod, a former director of Trainex and Starlight Film Studios, offered tax effective investments between 1990 and 1992, and raised more than $6 million from the public before using $1.3 million of the funds for his personal use.
MacLeod was convicted on 18 of the ASIC charges on March 10, 1999, at a trial in the District Court of NSW before Sydney District Court Judge Rummery.
The Court of Criminal Appeal of NSW later quashed two of the 18 ASIC charges on September 14, 2001.
In February 2000, MacLeod was sentenced to seven years jail, to serve a minimum of five years, backdated to January 30, 1997, when he was first taken into custody after being extradited from the United States.
Levels of fraud in Australia are often difficult to assess due to the variance of business practices and reporting methods, but victim surveys have found that the financial services industry continues to experience a greater level of fraud than other sectors.
In a recent Australian business survey, KPMG found 59 per cent of the 37 respondents from the financial services sector reported having experienced fraud over the previous two-year period.
The Australian Institute of Criminology (AIC) says industry responses to the risk of fraud include internal controls such as fraud training, risk assessment on new products and processes, automated fraud detection systems and fraud prevention policies.
AIC director Dr Adam Graycar says: “Controlling fraud in the financial services sector is made difficult by the competitive demand for fast-to-market product development, need for flexibility in product features and delivery, and rapid introduction of new technologies.
“These factors entail a significant risk of exploitation by those seeking to gain an advantage through dishonesty.”
