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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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Jotham Lian

Jotham Lian

Jotham Lian is the news editor of Accountants Daily, the leading source of breaking news, analysis and insight for Australian accounting professionals.

Before joining the team in 2017, Jotham wrote for a range of national mastheads including the Sydney Morning Herald, and Channel NewsAsia.

You can email Jotham at: This email address is being protected from spambots. You need JavaScript enabled to view it. 

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