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A Gold Coast chartered accountant has been sentenced to eight months’ imprisonment, to be served by way of an intensive correction order, following an ASIC investigation.
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Gold Coast accountant sentenced
20 February 2015
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Paul Anthony Scott, a chartered accountant of Southport, Queensland, pleaded guilty in the Brisbane Magistrates Court to one count of lodging false documents with ASIC and one count of obstructing ASIC.
The regulator’s investigation found that on 27 occasions between 1 July 2010 and 30 March 2013, Mr Scott lodged documents with ASIC concerning seven companies that contained false and misleading information.
The misleading information related to the citing of a fictitious person as a company director in various documents.
The charge of obstructing ASIC related to evidence that Mr Scott and his former business partner, Graeme Dwyer, lied about the existence of a fictitious director, Mr Edwards, during questioning by ASIC and took other steps to obstruct the investigation.
Mr Scott and Mr Dwyer ran a pre-appointment insolvency business on the Gold Coast between 2010 and 2012.
In a statement, ASIC said Mr Dwyer created a fictitious identity - known as Mr Gary Edwards - and provided those details to Mr Scott who used the fictitious Mr Edwards to:
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• lodge false and misleading documents appointing Mr Edwards as a company director;
• replace a real person acting in the role of director with the fictitious identity, back-dating the director appointment by 18 months; and
• create other false corporate records using the fictitious identity, including taxation and employment records.
Mr Scott also used the fictitious identity to facilitate deeds of company arrangement for debts owed by three companies in external administration (collectively known as the Glowclose Group).
Mr Dwyer and Mr Scott had previously provided pre-appointment insolvency advice to the directors of these companies and four other companies.
Following ASIC intervention, the court terminated the deeds and appointed independent liquidators to the companies.
An intensive correction order is a non-custodial sentence requiring the recipient to complete a program devised by a court-appointed officer. This program may include things such as counselling and community service.
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