Wednesday 1 November 2006 – LAWFUE – Law News, Law Jobs – Mr James Kwok, former director and chief executive officer of Envirostar Energy Limited (Envirostar), has been found guilty of two fraud charges following an investigation by the Australian Securities and Investments Commission (ASIC). Mr Kwok, of Hope Island in Queensland, was found guilty of dishonestly using his position as a director under the Corporations Act after a two week trial in the Sydney District Court.
ASIC alleged that Mr Kwok acted dishonestly while a director of publicly listed company, Envirostar, by not disclosing his interest in two parcels of land leased by Envirostar. The leases had commenced in mid 2000 but Mr Kwok’s interest was not discovered until August 2002 when he tendered his resignation from the Envirostar Board. Envirostar had paid rent of approximately $30,000 per month for the land.
ASIC also alleged that Mr Kwok’s wife and son were directors of the companies recorded as owners of the land and that Mr Kwok failed to disclose this interest to the Envirostar Board or to Envirostar’s shareholders, either prior to, or during, the term of each lease. Mr Kwok was released on bail and is due to reappear in the Sydney District Court for sentencing on 15 December, 2006. The Commonwealth Director of Public Prosecutions prosecuted the matter. For further information contact: Allen Turton Deputy Executive Director, Enforcement Telephone: 02 9911 2338 Mobile: 0411 549 236 Emma Forehan ASIC Media Unit Telephone:03 9280 3354 Mobile:0409 702 310