THE Australian Securities and Investments Commission has brought criminal charges against the former bosses of Westpoint and Fincorp, which collapsed years ago owing $500 million.
Graeme Rundle the former head of the collapse Westpoint Group has appeared in the Downing Centre Local Court in Sydney facing two criminal charges.
ASIC alleges that in May 2004, Rundle made false statements to a financial institution in support of an application for a $71 million credit facility to fund a Westpoint building project known as the Scots Church Development on York Street in Sydney.
Rundle was the chief financial controller of the Westpoint Group of companies. He was also director and secretary of Scots Church Development Ltd and secretary of York Street Mezzanine Pty Ltd – which are subsidiary of Westpoint.
Each offence carries a maximum penalty of five years’ imprisonment.
The Westpoint Group collapsed in January 2006 with losses of more than $300 million and ASIC is still in the process of recovering investor funds.
ASIC has also brought charges against the former chairman and CEO of Fincorp Investments Limited, Eric Krecichwost and the former finance director Jacob Lee Quigley.
Both also made an appearance along Rundle in the Downing Centre Local Court in Sydney.
Krecichwost has been charged with three counts of dishonestly using his position as a director of a company with the intention of directly or indirectly gaining an advantage for himself and others. Quigley faces one charge of the same count.
Fincorp Investments Limited was a member of the Fincorp Group of companies which collapsed in March 2007 owing investors $200 million.
The charges against Krecichwost relate to three cheques for $900,000, $825,000 and $1,980,000 ASIC alleges he signed in September and October 2003. The charge against Quigley involves the $1,980,000 cheque that Quigley is also alleged to have signed in October 2003.
The maximum penalty for each offence is five years imprisonment or $220,000 or both.
Krecichwost and Quigley pleaded not guilty to all charges and were bailed to appear again on 15 December 2009.
Australian Property Journal
