Stephen O’Neill and John Narramore of SME’s R Us have both pleaded guilty in the Brisbane District Court to one charge for dealing in the proceeds of crime.
An ASIC investigation found that in October 2014, O’Neill and Narramore advised a client undergoing a dispute with a creditor about an asset protection strategy that would involve the illegal removal of company assets so as to prevent creditors having access to those assets.
Between October 2014 and January 2015, O’Neill and Narramore issued fictitious invoices from companies under their control to their client, Cap Coast Telecoms, for purported services that were never provided.
Cap Coast Telecoms former director, Richard Ludwig, dishonestly transferred a total of $743,050 from the bank account of his company to the bank accounts of the companies under O’Neill and Narramore control.
O’Neill and Narramore subsequently transferred the funds to Mr Ludwig or his associates. Once the funds were transferred, Cap Coast Telecoms was wound up in liquidation on 19 January 2015.
At the time that Cap Coast Telecoms was wound up, it owed creditors a total of $2,955,138.
Intentionally dealing with the proceeds of crime is an offence under the Criminal Code Act (Cth) 1995 and carries a maximum penalty of 1,200 penalty units or imprisonment for 20 years, or both.
Narramore is scheduled for sentencing on 12 November, while O’Neill has been listed for 27 February 2020.
