The judge who sent the former Astarra Asset Management (AAM) director Shawn Richard to jail ruled that Richard was entitled to a discounted sentence because of the assistance he provided authorities following the collapse of its responsible entity Trio Capital.
New South Wales Supreme Court judge Peter Garling on Friday sentenced Richard on two counts of dishonest conduct, sending him behind bars for a minimum of two years and six months and an additional 15 months good behaviour bond.
But he ruled that Richard was entitled to a 37.5 per cent discount on the sentence because of "utilitarian value of his plea of guilty" and the help he gave authorities.
"Richard is guilty of serious crimes of a high order," Garling said.
"They were carefully considered and planned, they were concealed, they continued over a period of nearly four years and they led to significant financial losses in excess of $26 million."
"Richard knew what he was doing was dishonest, that he was providing misleading information to those entitled to accurate information and that in respect of the criminality encompassed by charge one, he received $1 million personally, which was a very significant personal benefit."
"But Richard is entitled to a discount because of the utilitarian value of his plea of guilty and because of the assistance he has provided to authorities."
ASIC Chairman Greg Medcraft welcomed the sentence as an effective deterrent against dishonest conduct by those in positions of trust.
"Richard was a critical gatekeeper in the financial services system, responsible for making decisions in the interests of investors. His dishonesty resulted in significant detriment to those investors," he said.
"ASIC has recently increased its focus on the responsibilities of gatekeepers and, as this case demonstrates, will ensure that those who dishonestly fail in those responsibilities are brought to account in criminal proceedings."
