Former directors of failed property group Australian Capital Reserve (ACR) have been sentenced to terms of imprisonment on charges relating to false or misleading statements in the company's accounts.
Samuel Pogson of Wahroonga, Murray Lapham of Turramurra and Steven Martin of West Pennant Hills, were yesterday sentenced at the New South Wales District Court after pleading guilty to one charge each under the NSW Crimes Act of making a false or misleading statement to obtain a financial advantage for the company.
The ex-directors have been sentenced to terms of imprisonment to be served by way of Intensive Correction Order (ICO).
Pogson also pleaded guilty to one charge under the Corporations Act of making a false or misleading statement in a form lodged with ASIC.
Pogson and Lapham were each sentenced to two years imprisonment to be served by ICO commencing 21 March 2012 until 20 March 2014 for the charges under the NSW Crimes Act.
Pogson was also sentenced to one year imprisonment to be served by ICO and served concurrently with the other charge.
Martin was sentenced to one year and four months imprisonment to be served by ICO commencing 21 March 2012 until 20 July 2013.
ASIC alleged the three directors concurred in the making of a statement in ACR's Prospectus 6 lodged on 7 April 2004, which contained the financial statements of ACR's parent company, Castle Investment Company and controlled entities (CIC).
The CIC stated profit before income tax as at 31 December 2003 of $7,409,483 was alleged to be false or misleading because the stated profit before income tax was inflated.
ASIC also alleged that in ACR's Prospectus 6, Pogson made a statement in a Director's Declaration that the financial statements of CIC gave 'a true and fair view of the financial position as at 31 December 2003 and of the performance for the half year ended on that date of the Company and Economic Entity'.
However, the court found that to his knowledge this was false or misleading in that the stated profit before income tax was inflated.
The matter was prosecuted by the Commonwealth Director of Public Prosecutions.
