Westpoint sentence too lenient: ASIC

Regulator wants custodial sentence

Julie May

Mon 25 Aug 2008

Former Westpoint promoter Neil Austin Burnard has been fined $50,000 and placed on a 12-month good behaviour bond but ASIC is requesting an appeal against the leniency of the sentence.

If Burnard does not abide the bond he will face jail time, however, ASIC will request the Commonwealth Director of Public Prosecutions (CDPP) consider lodging an appeal and placing Burnard on a custodial sentence.

On May 6, 2008, a jury found Burnard guilty on nine criminal charges arising from ASIC's investigation into the affairs of Kebbel (NSW) Pty Ltd, now known as Palentia Pty Ltd, which formed part of a broader enquiry into the collapse of the Westpoint Group.

The convictions relate to six investors persuaded by Burnard to invest in Westpoint mezzanine companies, who put forth a total of $1,175,000.

"The money belonging to the investors who gave evidence at the trial was placed at risk, and ultimately most of the funds were lost in the Westpoint collapse," a statement from ASIC said

Under the Crimes Act of NSW, Burnard was charged with obtaining a financial advantage in the following Westpoint mezzanine companies: Ann Street Mezzanine Pty Ltd, York Street Mezzanine Pty Ltd, Mount Street Mezzanine Pty Ltd, Bayview Heritage Mezzanine Pty Ltd and Emu Brewery Mezzanine Pty Ltd, by making or publishing statements that he was a director of Kebbel Investment Bank between July 1, 2003 and  November 30, 2004, while this entity did not exist.