04-383 Former Airlie Beach accountant jailed on fraud charges
Tuesday 23 November 2004
Mr Andrew James McKenzie, a 37 year old former accountant from Airlie Beach in Queensland, has been sentenced in the Mackay District Court on nine charges brought by the Australian Securities and Investments Commission (ASIC).
Mr McKenzie, an undischarged bankrupt from Mackay Queensland, was today sentenced to four years imprisonment for dishonestly applying funds. Judge Forde ordered that he be recommended for parole after serving 16 months. Mr McKenzie was also sentenced to 16 months imprisonment, to be served concurrently, for dishonestly using his position.
On 19 July 2004, Mr McKenzie pleaded guilty to five counts of dishonestly applying an additional total of $375,000 from the trustee companies and Airlie Investment Corporation Pty Ltd (Airlie Investment Corporation), for his personal use and by AJM and Goldsky Holdings.
Also on 19 July 2004, Mr McKenzie pleaded guilty to four counts of dishonestly using his position as a director of Airlie Properties Pty Ltd (Airlie Properties) and Cannonvale Markets Pty Ltd (Cannonvale Markets). Each of these companies were trustees of various property investment unit trusts (the trustee companies).
During 2001, Mr McKenzie sold the various syndicated properties, either wholly or in part, to several purchasers without the prior approval of the unit holders. Only some of the investors received a share of the profits from Mr McKenzie.
Mr McKenzie dishonestly used his position in the trustee companies to gain a financial advantage of $595,000 for a number of additional companies of which he was a director. The companies included AJM Management and Consultancy Pty Ltd (AJM), Goldsky Holdings Pty Ltd (Goldsky Holdings) and Landmark Property Syndicates.
In 2002, Airlie Investment Corporation, Airlie Properties, and Cannonvale Markets were placed into administration and/or liquidation.
‘ASIC will ensure that company directors who dishonestly use funds raised from investors, in good faith, are brought before the Courts for appropriate punishment. The Courts treat acts of dishonesty very seriously, and as this case shows, the consequences of such offences can include significant jail time’, ASIC Deputy Executive Director of Enforcement, Mr Allen Turton said.
The matter was prosecuted by the Commonwealth Director of Public Prosecutions.
ASIC Website: Printed 01/06/2009
