The former chief executive of Newcastle investment company Whet Investments has been charged with fraud and misusing his position.
The charges against Hugh Gordon, who was also a director at Whet, followed an Australian Securities and Investments Commission (ASIC) investigation into the unlisted public company’s fundraising and management practices.
The company allegedly issued redeemable preference shares to the value of $10.8 million primarily to retail investors in order to acquire and operate business investments.
It was placed into voluntary administration by its directors in July of 2005 and a Deed of Company Arrangement was executed later that year.
Gordon faces seven charges including the alleged improper use of $500,000, the fraudulent concealment or removal of property to the value of $285,000 and engaging in the management of a company while disqualified.
He was declared bankrupt in January this year.
