Following a trial that lasted for 59 days, the jury found Andrew Eric Young guilty of one count of fraud by dishonestly gaining loan facilities from Westpac in November 2007 totalling $13 million, and one further count of fraud by dishonestly causing $330,000 to be withdrawn from a Kleenmaid company bank account two days prior to administrators being appointed.
The funds were transferred to a bank account held by a company in which Young held an interest and from which he and his wife would benefit from the payment.
Young was also found guilty of two counts of criminal insolvent trading of debts of $3.5 million and 15 counts of criminal insolvent trading of debts amounting to more than $750,000.
In passing sentence, Judge Brian Devereaux said, “It would be obnoxious and naive to consider these types of offences as victimless…” and that “people in the community must be put on notice that dishonesty will bring with it commensurate punishment”.
ASIC commissioner John Price explained that the sentencing of Young concluded ASIC’s criminal proceedings against the Kleenmaid directors.
“Mr Young’s lengthy imprisonment reflects the seriousness of this matter and should serve as a strong warning to company directors of the consequences where misconduct is established,” said Mr Price.
Mr Young was the last of three Kleenmaid directors to be taken to court, after Gary Collyer Armstrong received a five and a half years’ jail sentence in 2015 and Bradley Wendell Young was sentenced to nine years’ imprisonment for fraud and a total of three and a half years for the insolvent trading charges.
“ASIC will continue its efforts to ensure directors and company officers meet their obligations, establish and maintain strong corporate governance standards and to bring those who fail in their duties to account,” Mr Price said.
