Appearing in the Adelaide Magistrates Court last week, Stanley Zbigniew Maka of North Adelaide, South Australia, pleaded guilty to one count of breaching his director duties and one count of concealing company records.
He was sentenced to four months’ imprisonment and released on a $500, 12-month good behaviour bond.
As a consequence of his conviction, Mr Maka is disqualified from managing corporations for five years from 27 November 2019.
Mr Maka, a director of Eastwood Insulation Pty Ltd, a soundproofing and acoustic insulation services business, had undergone scrutiny from ASIC after the corporate regulator received a funded report from the joint liquidators of Eastwood Insulation, Ian Burford and Peter Macks from Macks Advisory.
The ASIC investigation found that between about 4 July 2013 and 12 December 2016, Mr Maka unlawfully transferred assets and $200,000 from Eastwood Insulation to Thermal Clad Pty Ltd, of which he was also a director.
In doing so, Mr Maka used his position dishonestly to avoid paying Eastwood Insulation’s creditors, instead allowing Thermal Clad the benefit of the cash and assets.
The investigation also found that between about 1 June 2010 and 16 April 2014, Mr Maka engaged in conduct that resulted in the concealment of Eastwood Insulation’s books by producing inaccurate records and failing to produce all books.
Eastwood Insulation was subsequently placed into liquidation on 6 March 2014 and had $1.25 million owing to the ATO.
Jotham Lian is the 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.