ASIC charges director and pre-insolvency advisers with dealing with proceeds of crime

Following an investigation into the affairs of Cap Coast Telecoms Pty Ltd, ASIC has charged a company director and two pre-insolvency advisers with dealing with proceeds of crime, alleging the trio were complicit in the removal of almost $750 000 in company funds.

On 1 March 2019, the trio appeared in the Brisbane Magistrates Court which heard that Richard Ludwig, former Director of Cap Coast Telecoms, had garnered advice from Stephen O’Neill and John Narramore of SME’s R Us following a dispute with a creditor.

ASIC alleged that between October 2014 and January 2015, the duo aided Ludwig in the removal of $743 050 of company funds to accounts in their control before the company was wound up in liquidation.

The majority of the money was then forwarded to Ludwig, with duo retaining a portion.

Mr Ludwig has subsequently been charged with ten counts of breaching his director duties pursuant to the Corporations Act 2001 (Cth) and faces a maximum penalty of 2000 penalty units and/or five years imprisonment.

All three men are charged with one count of dealing in the proceeds of crime worth $100,000 or more under to the Criminal Code 1995 (Cth), for which they face up to 1,200 penalty units and/or 20 years imprisonment.

The trio were bailed and the matter is now due to return to the Brisbane Magistrates Court on 3 May 2019.

This image has an empty alt attribute; its file name is Wiebke-Herrmann-150x150.jpgWiebke Herrmann is a Director at James Conomos Lawyers where she practices in the areas of insolvency, bankruptcy and commercial litigation. If you or your business needs assistance navigating a legal dispute, please do not hesitate to contact her. 
3004 8214 |    |  wiebke@jcl.com.au