Former Harts Australasia executive committed to stand trial
A former deputy executive chairman of Harts Australasia has appeared in the Brisbane Magistrates Court in relation to charges brought by the Australian Securities and Investments Commission (ASIC).
Steven Irvine Hart of Sunnybank, Queensland, has been committed to stand trial in the Brisbane District Court on one charge of dishonestly causing detriment to another. A trial date is yet to be fixed.
ASIC alleges that between June 29 and July 4, 2000, Hart transferred $5 million from Harts Australasia to an unrelated company. This money was part of $30 million raised in the public float of Harts Australasia in May 2000.
According to ASIC, the funds were allegedly transferred to a bank account in Sydney in the name of Harts Australasia, and then subsequently to Cardinal Financial Services (Cardinal) in trust. This money was subsequently lost in speculative trading on futures and derivatives.
ASIC alleged that this transfer and subsequent investment was undertaken without the knowledge or authority of the Harts Australasia board of directors.
In August 2000, Harts Australasia took steps to acquire Cardinal. The $5 million transferred from Harts Australasia to Cardinal was not disclosed during due diligence or at the time of purchase. Harts Australasia acquired Cardinal in August 2000.
The matter was investigated as a result of a referral from the Australian Securities Exchange.
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