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Liquidator uncovers director falsifying company books

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Liquidator uncovers director falsifying company books

A South Australian restaurateur is in trouble with ASIC after a liquidator found that he had pocketed a portion of the sale of his company and fudged bank statements to cover his tracks.

Business Jotham Lian 23 April 2019
— 1 minute read

Restaurateur Gaowei Shi, of Highbury, South Australia, has pleaded guilty to one charge of falsifying company books.

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An ASIC investigation found that Mr Shi, director of The Crane Japan Restaurant (SA) Pty Ltd, a restaurant in Glenelg, South Australia, had redirected $47,000 from a purchase and sale agreement in December 2015 to sell assets of the company to East and West Venture Pty Ltd for $100,000.

Mr Shi redirected approximately $47,000 of the sale proceeds to his personal account.

ASIC found that Mr Shi falsified the company’s bank statements to show that the $47,000 was deposited into the company’s bank account.

The falsification was discovered after the company entered liquidation on 9 March 2016 and the liquidator, Peter Lanthois of DuncanPowell, reported Mr Shi’s conduct to ASIC.

At the time of liquidation, the company owed creditors approximately $328,000.

For falsifying company books, Mr Shi can face a maximum penalty of two years’ jail time under section 1307 of the Corporations Act.

The matter has been adjourned to 16 May 2019 for sentencing.

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Liquidator uncovers director falsifying company books
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