Former Westpoint Group chief financial officer Graeme Rundle was sentenced to 18 months in prison for two criminal offences of making a false or misleading statement with intent to obtain a financial advantage for Scots Church Development.
However, Rundle's sentence was suspended upon entering into an 18-month good behaviour bond. The decision was handed down on Friday in Parramatta District Court.
He has been found guilty of making false statements in applying for a $71 million credit facility earlier this year.
Chief financial officers, as an officer of a corporation, must take their responsibilities seriously, and discharge their legal duties to the company and to comply with the law carefully, ASIC Chairman Greg Medcraft said on Friday.
"Chief financial officers must ensure that any representations made by them to financiers, on behalf of companies, are accurate," Medcraft said.
The case highlighted ASIC's willingness to address corporate misconduct, Medcarft said.
"To date ASIC has pursued a wide range of actions and remedies concerning Westpoint against gatekeepers such as financial advisers, auditors, trustees and directors," Medcraft said.
In May 2004, Rundle made false statements to a financial institution in support of an application for a $71 million credit facility to fund a Westpoint building project known as the Scots Church Development on York Street in Sydney's central business district.
Rundle was also director and secretary of the Scots Church Development and secretary of York Street Mezzanine, which were entities within the Westpoint Group of companies.
