2011年7月3日星期日

ASIC brings criminal charges against Westpoint founder

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Updated July 1, 2011 17:29:00

Australia's corporate watchdog has brought criminal charges against the founder of failed property group Westpoint, who faces a maximum of five years' jail if convicted.

Westpoint collapsed in 2006, owing 4,000 investors about $300 million.

The Australian Securities and Investment Commission (ASIC) has charged founder Norm Carey, along with company secretary Graeme Rundle, with breaching their duties as officers of Westpoint.

ASIC also alleges this came while the pair executed deeds extending the time for Westpoint to exercise an option to purchase the Warnbro Fair Shopping Centre in Perth.

The move is the latest in a series of legal actions between the two.

On Monday Carey said he had taken out a misfeasance action against ASIC, arguing it had relied on incorrect evidence and withheld information from the court as part of its bid to shut down Westpoint.

In a statement, Carey said that ASIC applied to wind up York Street Mezzanine knowing it would trigger defaults in Westpoint's lending covenants which would systematically cause its collapse.

He also said ASIC withheld from the Federal Court the Deloitte solvency review which found that Westpoint and its entities, including YSM, were solvent.

The trial for those allegations is set down for November.

Tags: business-economics-and-finance, company-news, consumer-finance, industry, housing, law-crime-and-justice, courts-and-trials, fraud-and-corporate-crime, management, australia, wa, perth-6000

First posted July 1, 2011 17:16:00


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