The Australian Securities and Investments Commission (ASIC) brought charges against Carey and Rundle in July 2011, five years after the collapse in 2006 of Westpoint Management Limited and Westpoint Corporation.
At the time of the collapse, investors in Westpoint-issued financial products had outstanding total capital invested of approximately $388 million. Estimated losses to investors totalled approximately $310 million, according to ASIC.
Perth-based Carey and Rundle were each charged in the Perth Magistrates Court, with two criminal charges brought by ASIC.
At the time, ASIC alleged the pair had breached their duties as officers of Westpoint Management Limited and Westpoint Corporation Pty Ltd while executing deeds extending the time for Westpoint Corporation Pty Ltd to exercise an option to purchase the Warnbro Fair Shopping Centre and adjoining land.
The breaches also involved transfer of the option to purchase WFSC to Bowesco Pty Ltd, a Carey family trustee company, according to ASIC.
At the time, the two were officers of Westpoint Management Limited, responsible entity for the managed investment scheme Warnbro Fair Syndicate, which owned the WFSC. They were also officers of Westpoint Corporation Pty Ltd.
Court proceedings against the pair commenced around two weeks ago. Late yesterday ASIC announced that “during the course of the trial, ASIC located a document relevant to the charges.
“In accordance with ASIC’s procedural fairness obligations, ASIC immediately disclosed the document and copies were given to Mr Carey and Mr Rundle, and the court.
“Following an assessment of the document in the context of the prosecution’s case, the Commonwealth Director of Public Prosecutions today advised the District Court of Western Australia that the case should proceed no further and filed Notices of Discontinuance,” ASIC said.
ASIC did not disclose the nature of the document.
