A former director of the Kleenmaid group of companies, Mr Andrew Eric Young was sentenced to nine years’ imprisonment on Friday 7 February 2020 after being found guilty by a District Court jury of 19 offences arising out of the collapse of the national whitegoods distributor.
Following a trial which lasted for 59 days, on 10 January 2020, the jury found Mr Young guilty of:
Count 1: one count of fraud by dishonestly gaining loan facilities from Westpac in November 2007 totalling $13 million;
Counts 2 & 3: two counts of criminal insolvent trading of debts of $3.5million relating to two additional loan facilities obtained by one of the Kleenmaid companies, EDIS Service Logistics Pty Ltd (EDIS) from Westpac in July 2008;
Counts 4 to 17 and 19:fifteen counts of criminal insolvent trading of debts amounting to more than $750,000 that were incurred during the period October 2008 to April 2009; and
Count 20, one further count of fraud by dishonestly causing $330,000 to be withdrawn from a Kleenmaid company bank account two days prior to administrators being appointed and transferred to a bank account held by a company in which Mr Young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 convicted on two counts of fraud and sentenced to a term of imprisonment of nine years with a non-parole period of four years. The parole date for the fraud offences was set at 9 January 2024. Mr Young was convicted of 17 counts of insolvent trading for which he was sentenced to a total of three years imprisonment to commence from the parole eligibility date for the fraud, and after serving 12 months imprisonment, Mr Young will be eligible for release upon entering into a recognizance of $500 to be of good behaviour for two years.
In passing sentence, Judge Devereaux SC said ‘It would be obnoxious and naive to consider these types of offences as victimless…’ and that ‘people in the community must be put on notice that dishonesty will bring with it commensurate punishment.’
ASIC Commissioner John Price noted the sentencing of Mr Andrew Young concluded ASIC’s criminal proceedings against the Kleenmaid directors.
Mr Price said, ‘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.’
Mr Price noted the proceedings against Mr Andrew Young and his co-accused were the culmination of an extensive and complex investigation by ASIC and prosecution of the charges by the Commonwealth Director of Public Prosecutions.
‘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’ Mr Price said.
