Following an ASIC investigation, Mr Garry Leonard Matthews, a former director of Carrington Carpet Services Pty Ltd (Carrington), has been sentenced to three years jail after earlier pleading guilty to dishonestly and recklessly using his position as a director to cause detriment to the company.
Mr Matthews was sentenced to serve 12 months in jail with two years suspended.
Mr Matthews, of Darwin, used Carrington to operate a carpet business in Mount Waverley, Victoria. ASIC’s investigation found that Mr Matthews used his position as the director of Carrington to authorise the withdrawal of numerous bank cheques totalling $1,075,300 belonging to Carrington for his personal use, unrelated to the carpet business operated by Carrington.
As a result of Mr Matthews’ conviction today, he is automatically disqualified from managing corporations for five years upon his release from jail.
Greg Tanzer, ASIC
ASIC Commissioner Greg Tanzer said:
Company directors are required to act honestly and in the interests of the company they represent. The consequences of failing to discharge these obligations are serious, including jail and a lengthy disqualification from the management of companies’.