Former managing director gets 12 years in jail
The former managing director of Burns Philp Trustee Company has been sentenced to 12 years in prison on fraud charges, following a lengthy cat and mouse game with the Australian Securities and Investments Commission (ASIC).
Peter Clarke, who led Burns Philp until the mid 90s, was extradited from Germany in December 2010. ASIC believes he fled Australia a decade ago while on bail awaiting sentencing for five Corporations Law charges.
According to the regulator, Clarke intentionally defrauded his clients of approximately $4.1 million, with some of these funds being used for Clarke’s personal purposes and for the business expenses of the company.
Justice John Gallop, who pronounced the sentence, stated Clarke had engaged in criminal conduct involving serious breaches of the fiduciary duty owed to his clients, and the creation of lengthy and complicated audit trails to avoid detection and prosecution.
Clarke had also used substantial client funds to “resist, delay and frustrate proper attempts by ASIC and the court appointed receiver … to investigate the prisoner’s conduct and to recover misappropriated funds,” according to Justice Gallop.
He will have to serve seven years in prison before being eligible for parole.
Burns Philp was placed into receivership in December 1993 and liquidation in June 1994.
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