Login
iscover
Insolvent trading and fraud have landed a former director of the Kleenmaid group of companies nine years in jail.
Newsletter
Kleenmaid director sentenced to 9 years in jail for fraud, insolvent trading
11 February 2020
•
11 minute read
You’re out of free articles for this month
To continue reading the rest of this article, please log in.
Create free account to get unlimited news articles and more!
Following a 59-day trial, former director of the Kleenmaid group of companies Andrew Eric Young was sentenced to nine years of imprisonment after being found guilty of 19 offences arising out of the collapse of the national white-goods distributor.
A Queensland District Court jury found Mr Young guilty of one count of fraud by dishonestly gaining loan facilities from Westpac in November 2007 totalling $13 million, and one further count of fraud by dishonestly causing $330,000 to be withdrawn from a Kleenmaid company bank account two days prior to administrators being appointed.
The amount was transferred to a bank account held by a company in which Mr Young held an interest and from which he and his wife would benefit from the payment.
Mr Young was also found guilty of two counts of criminal insolvent trading of debts of $3.5 million and 15 counts of criminal insolvent trading of debts amounting to more than $750,000.
Judge Brian Devereaux SC said it would be naïve to consider these types of offences as victimless.
“People in the community must be put on notice that dishonesty will bring with it commensurate punishment,” Judge Devereaux said.
==
==
Mr Young’s sentencing concludes ASIC’s criminal proceedings against the Kleenmaid directors after the national white-goods distributor went into administration in April 2009 with consolidated debts of approximately $96 million.
Those debts included $26 million in customer deposits for appliances that were yet to be delivered.
The three former directors appeared in court for the first time in February 2012 following an investigation launched by ASIC.
Mr Young is the third and final former director of Kleenmaid to be sentenced, following the conviction of Gary Armstrong in 2015 and Bradley Young in 2016.
Mr Armstrong was sentenced to five and a half years’ imprisonment for one count of fraud and two counts of insolvent trading, while Mr Bradley Young was sentenced to nine years for one count of fraud and 17 counts of criminal insolvent trading.
The Kleenmaid group’s former auditor, Wayne John Wessels, was previously suspended for three years on 29 November 2013 by the Companies Auditors and Liquidators Disciplinary Board.
“Mr Young’s lengthy imprisonment reflects the seriousness of this matter and should serve as a strong warning to company directors of the consequences where misconduct is established,” said ASIC commissioner John Price.
“ASIC will continue its efforts to ensure directors and company officers meet their obligations, establish and maintain strong corporate governance standards and to bring those who fail in their duties to account.”
You are not authorised to post comments.
Comments will undergo moderation before they get published.