Former director pleads guilty to fraudulently removing company funds

ASIC office

Ms Lorraine Bullock of Croydon, Victoria has pleaded guilty to dishonestly using her position as a director to fraudulently remove company property, ASIC announced earlier.

Ms Bullock, a former director of Twently12 Pty Ltd operated a liquor store in Healesville, Victoria.

An ASIC investigation found that soon after the appointment of the liquidator to the company, Ms Bullock caused funds in the amount of $20,655.18 to be transferred from the Company to a related company called Yarra Junction Pty Ltd of which her son was a director. At the time, Ms Bullock was not authorised to make the transfer. The company also had numerous creditors who were collectively owed in in excess of $700,000.

The company was placed in liquidation on 27 October 2015.

ASIC commenced an investigation after receiving a report from the liquidator of the Company; Brent Morgan of Rodgers Reidy. ASIC assisted the liquidator to prepare his report by providing funding from the Assetless Administration Fund.

Ms Bullock appeared in the Melbourne Magistrates Court on 18 January 2018 and pleaded guilty to one count of fraudulently removing company property. Ms Bullock was discharged without conviction upon entering into a recognisance in the sum of $1,000 on the condition that she is of good behaviour for 18 months.

The matter was prosecuted by the Commonwealth Director of Public Prosecutions.

Ms Bullock was charged and found guilty of breaching s.590 of the Corporations Act 2001.

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