media release (14-125MR)

Guilty pleas in Phosphagenics matter

Published

A former Phosphagenics Ltd employee today pleaded guilty in relation to his role in the alleged theft of more than $4.6 million from the company, following an ASIC investigation.

Dr Robert Gianello, 59, of Sassafras, Victoria, appeared in Melbourne Magistrates Court and pleaded guilty to three charges of obtaining money by deception from Phosphagenics Ltd and its subsidiary, Vital Health Sciences Pty Ltd (VHS).

The three charges cover the period from November 2004 to August 2012, and involve $4,635,917.

During the period from November 2004 to June 2008, Dr Gianello was employed by Monash University and worked on research and development on behalf of VHS. He was also a partner in a business which submitted allegedly false invoices to VHS.

In July 2008, Dr Gianello joined Phosphagenics Ltd as an employee and, until August 2012, agreed to the submission of the allegedly false invoices by a company associated with Dr Woei-Jia Jiang.

Dr Jiang was the director of two companies which submitted allegedly false invoices to Phosphagenics and VHS.

Dr Jiang, 51, of Glen Waverley, Victoria, also appeared in Melbourne Magistrates Court today and pleaded guilty to three charges of obtaining money by deception.

The three charges against Dr Jiang cover the period from June 2008 to June 2013, and involve $4,392,035.

Dr Gianello and Dr Jiang were bailed to appear before the County Court on 20 August 2014.

The matters are being prosecuted by the Commonwealth Director of Public Prosecutions.

Background

ASIC alleges the former Chief Executive Officer of Phosphagenics Ltd, Dr Esra Ogru, Dr Gianello and Dr Jiang were involved in a long-running deception involving the payment of false invoices submitted to Phosphagenics Ltd or VHS.

Dr Ogru appeared in court in May 2014 charged with nine offences, including conspiracy to obtain money and dishonestly using her position as a director to gain an advantage for herself.

Dr Ogru, who has not entered a plea, is on bail and will next appear before Melbourne Magistrates Court for a committal mention on 11 August 2014.

Editor's note 1:

On 11 August 2014 Dr Ogru's committal mention was heard in the Melbourne Magistrates Court where it was adjourned until 22 August 2014.

Editor's note 2:

Drs Gianello & Jiang made their plea submissions in the County Court on 20 and 21 August 2014. Both have been bailed to reappear in the County Court on 26 September 2014.

Editor's note 3:

The next court date scheduled for 26 September 2014 has been postponed to 9 October 2014.

Editor's note 4:

This matter was mentioned on 5 November 2014. The sentence hearing will be heard on 7 November 2014.

Media enquiries: Contact ASIC Media Unit