Former Kleenmaid director Bradley Wendell Young has been sentenced to nine years in prison after being found guilty of fraud and insolvent trading.
Following a trial that last 71 days, a jury found Young guilty of one count of fraud by dishonestly gaining loan facilities from Westpac Bank in November 2007 totalling $13 million; two counts of criminal insolvent trading of debts totalling $3.5million relating to two additional loan facilities from Westpac Bank in July 2008; and 15 counts of criminal insolvent trading of debts totalling more than $750,000 that were incurred during the period October 2008 to April 2009.
Presiding Judge Farr commented that “…insolvent trading… can wreak havoc on a business community and … you showed a callous disregard for the fortunes of those affected by your behaviour in risking other people’s money in extraordinary amounts.”
By the time administrators were appointed, Kleenmaid’s consolidated debts amounted to approximately $96 million which included $26 million in customer deposits that had been paid for appliances yet to be delivered and that the company’s balance sheet deficit was approximately $83 million.
ASIC commissioner John Price says that the ruling should send a message to anyone that tries to break the law.
“This is a strong endorsement of ASIC's case, highlighting the severity with which such behaviour should be viewed and should send a signal to all directors and companies that we will pursue them through the courts when they break the law.”