A former chief executive of an Australian investment company has faced court on seven counts of fraud and misusing his position.
Hugh Charles Gordon, a former director and chief executive of Whet Investments Ltd, appeared in the Sydney Downing Centre Local Court yesterday on charges following an ASIC investigation.
Gordon, of Redhead in New South Wales, faced one count relating to the alleged improper use of approximately $500,000; three charges alleging the fraudulent concealment or removal of property to the value of approximately $285,000; and three charges alleging he had engaged in the management of a company whilst disqualified.
A committal mention date was set for 2 October 2007 in the Sydney Downing Centre Local Court. The Commonwealth Director of Public Prosecutions is prosecuting the matter.
Whet Investments was an unlisted public company which was based in Newcastle in New South Wales.
The company issued redeemable preference shares to members of the public and used those funds to acquire and operate business investments.
It is alleged Whet Investments received about $10.8 million for shares, issued primarily to retail investors.
Whet Investments was placed into voluntary administration by its directors on 10 July 2005 and a Deed of Company Arrangement was executed on 21 October 2005.
Gordon had been an undischarged bankrupt from 31 October 2001 to 1 November 2004 and, consequently, was automatically disqualified from managing corporations.
He was declared bankrupt on 23 January 2007.
