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Wednesday 19 April 2017

17-117MR Director of cleaning company convicted for concealing company property

Mr Taleb Ibrahim, of Condell Park, New South Wales, has been convicted in Local Court Downing Centre Sydney for engaging in conduct that resulted in the fraudulent concealment of company property.

Mr Ibrahim was the director of Grace Carpet Cleaning (Australia) Pty Ltd (in Liquidation), which provided carpet and upholstery cleaning services.

An ASIC investigation found that Mr Ibrahim failed to disclose the existence of a company bank account to the Liquidator of Grace Carpet Cleaning (Australia) Pty Ltd when it was placed in liquidation on 6 November 2013.  Between 6 November 2013 and 14 January 2014, Mr Ibrahim withdrew $2,591.28 from the Company's bank account without the approval of the Liquidator.  Mr Ibrahim subsequently disclosed the existence of the bank account and the removal of the money to the Liquidator.

In her decision, the Magistrate described Mr Ibrahim's conduct as 'serious and wrong.' The Magistrate convicted Mr Ibrahim and released him into a recognisance to be of good behaviour for two years, conditional on the payment of $500. The Magistrate also made a reparation order for $2591.28, made payable to the Liquidator.

Reports lodged by external administrators of the company brought the matter to ASIC's attention.

As a result of the conviction, Mr Ibrahim is disqualified from acting in the management of a corporation until 11 April 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 fraudulent concealment of any debt or removal of property of the company contravenes the section.

The maximum penalty for a breach of section 590(1) is a fine of 100 penalty units or imprisonment for 2 years, or both.

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Last updated: 19/04/2017 05:55