Former Melbourne director sentenced on insolvent trading charges
The County Court of Victoria has sentenced the former director of International Consulting Group Pty Ltd to a total of three years and two months jail on charges brought by the Australian Securities and Investments Commission (ASIC).
As part of the County Court of Victoria's overall ruling, Anula Kumari Kauye was given a 12-month sentence for trading while insolvent and a non-parole period of two years after previously entering pleas of guilty to charges of insolvent trading, theft, and providing false information in an affidavit to the Victorian Supreme Court.
ASIC alleged that Kauye allowed International Consulting Group to trade while insolvent between 25 July 2003 and 1 October 2004, and to incur debts of $112, 142 owed to contractors and retail providers. ASIC also alleged that Kauye stole $873, 997 from US-based companies.
International Consulting Group successfully tendered for projects in developing regions of the world which were funded by organisations whose goals included the reduction of poverty, ASIC stated. The regulatory body alleged that these funds were subsequently misappropriated by International Consulting Group.
When one of the fund providers issued a statutory demand for the return of its money, Kauye filed a false affidavit regarding the use of this money for the purpose of setting aside the statutory demand, ASIC claimed.
"Directors must be aware that they breach the law if they incur debts when a company is insolvent or likely to become insolvent," said ASIC commissioner Michael Dwyer.
"The law is designed to deter directors from incurring debts to unsuspecting creditors of a company."
International Consulting Group was placed into liquidation on 25 August 2004 by order of the Supreme Court of Victoria and ASIC commenced its investigation in 2006. The Commonwealth Director of Public Prosecutions prosecuted the matter.
Recommended for you
With the final tally for FY25 now confirmed, how many advisers left during the financial year and how does it compare to the previous year?
HUB24 has appointed Matt Willis from Vanguard as an executive general manager of platform growth to strengthen the platform’s relationships with industry stakeholders.
Investment manager Drummond Capital Partners has announced a raft of adviser-focused updates, including a practice growth division, relaunched manager research capabilities, and a passive model portfolio suite.
When it comes to M&A activity, the share of financial buyers such as private equity firms in Australia fell from 67 per cent to 12 per cent in the last financial year.
