Giuseppe DeFrancesco, of Harrington Park NSW, has been charged with three offences relating to his conduct as an employee of Camden restaurant Jasa Dining Pty Ltd (in liquidation) between August 2023 and June 2025.

Following an ASIC investigation, it is alleged that between 17 August 2023 and 5 April 2024, Mr DeFrancesco dishonestly used his position as an employee to redirect $935,000 in proceeds from the sale of Jasa Dining to himself, to the detriment of Jasa Dining’s creditors and contrary to s184(2) of the Corporations Act, an offence which carries a 15-year maximum penalty.

ASIC further alleges that between 10 April 2024 and 22 April 2024, Mr DeFrancesco procured, incited, induced or encouraged Jasa Dining to redirect a further $96,793 in sale proceeds contrary to s588GAC(1) of the Corporations Act, an offence which carries a maximum penalty of 10 years’ imprisonment. The transaction is alleged to be a creditor defeating disposition made while the company was insolvent.

It is also alleged Mr DeFrancesco offered $50,000 to a person to induce them as a witness in a federal judicial proceeding to withhold true testimony contrary to s37(3) of the Crimes Act.

Prior to its liquidation, Jasa Dining operated a restaurant under the business name The Italian Food Project.

This is ASIC’s first charge brought under the criminal creditor defeating disposition legislation.

The matter was heard in the Downing Centre Local Court and adjourned to 11 August 2026 for further mention. It is being prosecuted by the Office of the Director of Public Prosecutions (Cth).

Background

Directors have a duty to prevent their company from entering into a transaction that is a creditor-defeating disposition. This is a disposition of property (i.e. assets):

• for less than the lesser of the market value of the property or the best price reasonably obtainable, and
• that prevents, hinders or significantly delays the property from becoming available to benefit creditors in a winding up.

A creditor-defeating disposition, such as disposing of property for less than its market value, may place a director at risk of engaging in illegal phoenix activity.

A director’s duty to prevent a creditor-defeating disposition arises when their company is insolvent or becomes insolvent because of a disposition or several dispositions of company property or assets.

This duty extends to other people who may be involved in or encourage such a disposition to take place, including pre-insolvency advisers, lawyers or others who assist or advise directors to undertake such a disposition.