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Two pre-insolvency advisers have pleaded guilty to money laundering charges after they were found to have advised on the illegal removal of a company’s assets.
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Pre-insolvency advisers plead guilty to money laundering
11 October 2019
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Stephen O’Neill and John Narramore of SMEs R Us have both pleaded guilty in the Brisbane District Court to one charge of dealing in the proceeds of crime.
An ASIC investigation had found that both Mr O’Neill and Mr Narramore had provided pre-insolvency advice to Richard Ludwig, a former director of Cap Coast Telecoms Pty Ltd, following a dispute his company was having with a creditor.
Both men advised Mr Ludwig about an asset protection strategy that would involve the illegal removal of company assets so as to prevent creditors from having access to those assets.
Between October 2014 and January 2015, Mr O’Neill and Mr Narramore issued fictitious invoices from companies under their control to Cap Coast Telecoms for purported services that were never provided.
Mr Ludwig dishonestly transferred a total of $743,050 from the bank account of Cap Coast Telecoms to the bank accounts of the companies under Mr O’Neill and Mr Narramore’s control. They subsequently transferred the funds to Mr Ludwig or his associates.
Once the funds were transferred, Cap Coast Telecoms was wound up in liquidation on 19 January 2015.
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At the time when Cap Coast Telecoms was wound up, it owed creditors a total of $2,955,138.
Intentionally dealing with the proceeds of crime is an offence under the Criminal Code Act (Cth) 1995 and carries a maximum penalty of 1,200 penalty units or imprisonment for 20 years, or both.
Mr Narramore is due to be sentenced on 12 November, while Mr O’Neill will be sentenced on 27 February 2020.
Mr Ludwig of Broadbeach Waters has been charged with one count of intentionally dealing in proceeds of crime and 10 counts of breaching his directors’ duties. He is yet to enter a plea and is due to appear in the Brisbane District Court on 31 October 2019.
Breaching director duties carries maximum penalty of 200 penalty units or imprisonment for five years, or both.
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