DMS was the sole director of a demolition and asbestos removal company named Rhino (WA) Pty Ltd who engaged in conduct that led to the fraudulent removal of company property. DMS was convicted in the Perth Magistrates Court for fraudulently removing company property. The crux of the matter is that DMS deposited a cheque worth $32,423.60, owed to Rhino (WA), into the account of Action Asbestos & Demolition Pty Ltd, a company of which he was also a director. He concealed these funds from the liquidators of Rhino (WA), preventing the funds from being given to the liquidators.
The presiding Magistrate described DMS’ conduct as being towards the upper end of the seriousness scale and accordingly he was convicted of fraudulently concealing company property from a liquidator and fined $8,000.
ASIC (Australian Securities and Investments Commission) investigated the case, with assistance from a supplementary report filed by the liquidators of Rhino (WA). DMS is disqualified from managing corporations until 16 November 2026 due to a previous disqualification and combined with this one, he is further disqualified from acting in the management of a corporation until 7 August 2028.
The case is based on a contravention of section 590(1)(c)(i) of the Corporations Act, where a person who is a past or present officer or employee of a company engages in conduct that fraudulently conceals any part of the company’s property valued at $100 or more. The maximum summary penalty for this offense at the time was 12 months’ imprisonment, a fine of $13,320, or both. The full ASIC media release can be read here.