media release (17-109MR)

Director of motor finance company convicted of concealing a company debt

Published

Mr Graeme Edward John Healy, of Bargara, Queensland, has been convicted and ordered to pay $3,000 in the Bundaberg Magistrates Court for engaging in conduct that resulted in the concealment of a debt.

Mr Healy was a director of Affordable Finance Facilities Pty Ltd, a motor finance company that held Australian credit licence number 392023, but has since been deregistered.

An ASIC investigation found that in May 2014, while the company was under external administration, Mr Healy agreed to repay Affordable Finance Facilities Pty Ltd $6,691.90 on behalf of a third party who borrowed the money from the company before it was placed in external administration. 

After receiving payments from the third party, Mr Healy failed to pass on the money to Affordable Finance Facilities Pty Ltd. Mr Healy subsequently provided false documentation to the administrator claiming the funds had been paid in full.

In handing down his decision, Magistrate William Smith stated that Mr Healy's conduct involved the intentional concealment of funds from external administrators and was an act of dishonesty.

ASIC Commissioner John Price said that the matter came to ASIC's attention as a result of reports lodged by the external administrators of the company.

"ASIC values the detailed investigations into a company's affairs that are made by external administrators and this prosecution would not have been possible without that work," Mr Price said.  

"ASIC reminds directors that preferential payments made when a company is facing financial difficulties may constitute misconduct and ASIC will act to assist all creditors."

As a result of the conviction, Mr Healy is disqualified from acting in the management of a corporation until 17 March 2022.

The matter was prosecuted by the Commonwealth Director of Public Prosecutions.

Background

Section 590(1)(c)(i) of the Corporations Act states that a person who, being a past or present officer or employee of a company, has engaged in conduct that resulted in the concealment of any debt due to or by the company contravenes the section.

The maximum penalty for a breach of section 590(1) is two years imprisonment or a fine of up to $17,000 for offences committed before 31 July 2015.

Media enquiries: Contact ASIC Media Unit