Director Of Newcastle-Based Investment Company Sentenced – Australian Securities Law

LAWFUEL – The Legal Newswire – Mr Wayne O’Brien, a former director of Newcastle-based investment company, Future Management Group Limited (FMGL), has been sentenced in relation to three charges brought by the Australian Securities and Investments Commission (ASIC).

Mr O’Brien was a director of FMGL between 9 February 2001 and 19 November 2003 during which time he raised funds from investors for proposed property developments in the Newcastle area. The company also separately operated a mortgage broking business, which included arranging loans for clients. FMGL is currently in external administration.

On 18 July 2007, Mr O’Brien pleaded guilty in the Sydney District Court to the charges which related to fraud and abusing his position as a company director. This included misappropriating $310,000 of loan money in April 2003 by transferring the funds into a company account to pay various bills and wages, instead of transferring the money into a client’s account as previously arranged.

In addition, Mr O’Brien dishonestly used his position as a director of FMGL by writing company cheques payable to a false name in 2002-2003. He also obtained $100,000 from an investor in January 2003 by providing information about FMGL developments that he knew to be false.

Mr O’Brien was sentenced to two years imprisonment in respect of the first charge, 18 months imprisonment in respect of the second charge and two years imprisonment in respect of the third charge. All sentences, to be served concurrently, were fully suspended upon Mr O’Brien entering into a recognisance to be of good behaviour for five years.
The Commonwealth Director of Public Prosectutions prosecuted the matter.

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