A Melbourne director has been committed to stand trial in the Victorian County Court for funneling funds raised from investors for a property trust into his wine business.
James Stanley Phillips of Blackburn South in Victoria was charged with two counts of dishonestly misusing his position as a director between May and October 2001, following an investigation by the Australian Securities and Investments Commission.
Phillips, who was a partner of the former accounting practice Landy & Company DFK, was also a director of Terra Firma Property Management Pty Ltd and Kings Creek Winery Pty Ltd.
Between May and July 2001, ASIC alleged that $1.02 million was received from investors in the Fyan Street Unit Trust, which was to be invested in the purchase of an office building in Fyan Street Geelong.
It is alleged that approximately $600,000 of investors funds were paid out of the trust account without the knowledge of investors and paid into other accounts which benefited Kings Creek Winery and The Lake Company Pty Ltd.
In May 2002, ASIC applied to have a trustee appointed to the Fyan Street Property Trust. Clyde White is the liquidator of the companies and trustee of the Fyan Street Property Trust.
Phillips indicated he would plead guilty to the charges. He was ordered to appear in the Victorian County Court on March 27, 2007.
The Commonwealth Director of Public Prosecutions is conducting the prosecution.
By Kathryn O’Meara
