Westpoint fundraiser avoids the clink

NEIL Burnard, Westpoint fund raiser and former director of Kebbell Investment Bank headed by Richard Beck, has avoided a jail.

Instead the New South Wales District Court handed down a 12 months imprisonment suspended on condition he be of good behaviour for the period of the sentence. He was also fined $50,000.

The Australian Securities and Investments Commission said last Friday it will request the Commonwealth Director of Public Prosecutions to consider lodging an appeal.

On May 06 this year, Burnard was found guilty by a jury on nine criminal charges arising from ASIC’s investigation into the affairs of Kebbel (NSW) Pty Ltd, now known as Palentia Pty Ltd, which formed part of a broader enquiry into the collapse of the Westpoint Group of Companies.

Burnard was charged under the Crimes Act of NSW of obtaining a financial advantage for five Westpoint mezzanine companies; Ann Street Mezzanine Pty Ltd,

York Street Mezzanine Pty Ltd, Mount Street Mezzanine Pty Ltd, Bayview Heritage Mezzanine Pty Ltd and Emu Brewery Mezzanine Pty Ltd by making or publishing statements that he was a director of ‘Kebbel Investment Bank’ between July 01 2003 and November 30 2004; this entity did not exist.

Burnard organised and attended promotional seminars at which investors were persuaded to invest in Westpoint mezzanine companies. The money belonging to the investors who gave evidence at the trial was placed at risk, and ultimately most of the funds were lost in the Westpoint collapse. Investors were afforded none of the protections which come from placing funds with a bank.

The nine charges on of which Burnard was convicted relate to six investors who invested a total of $1,175,000.

Burnard pleaded not guilty to the charges.

In June 2006 Burnard fled the country after telling ASIC that he would be available to “speak to ASIC investigators” in relation to the $330 million collapse of the Westpoint Corporation.

However, Burnard later boarded a plane for the US.

ASIC made the urgent application after being informed by airport authorities that Burnard’s plane had not departed Australia. However, following the making of the orders, ASIC was told he had left on an earlier flight.

Australian Property Journal