iscoverThe members’ voluntary liquidator was reported to ASIC by his replacement.
Liquidator charged for allegedly withdrawing over $150,000
18 October 2022
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7 minute read
A NSW voluntary liquidator has been charged with dishonestly using his position as a company officer and allegedly withdrawing over $150,000 from a business.
Ronald Cardwell was appointed the members’ voluntary liquidator of Loch-Co No 6 Pty Ltd in December 2013 and allegedly withdrew $150,367.12 from the business.
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ASIC alleges that the incident occurred between 4 May 2015 and 17 March 2016 and was carried out through 12 separate transactions from Loch-Co’s liquidation bank account, for his own benefit.
ASIC also alleged that Mr Cardwell failed to comply with a notice issued to him by the commission under Section 33 of the Australian Securities and Investments Commission Act 2001 (ASIC Act) which required him to produce books and records.
Mr Cardwell was removed as the liquidator after the members of Loch-Co placed an application for a new liquidator to be appointed.
Mr Cardwell’s successor, Steven Gladman of Hall Chadwick, was appointed by the NSW Supreme Court as the replacement liquidator on 17 October 2016 and reported the matter to ASIC, which began further investigations.
ASIC alleges that Mr Cardwell’s conduct contravened:
- Section 184(2)(a) of the Corporations Act 2001, which at the time of the alleged offending had a maximum penalty of five years imprisonment and, or a fine of up to 2,000 penalty units
- Section 63(1) of the ASIC Act, which at the time of the alleged offending had a maximum penalty of two years imprisonment and, or a fine of up to 240 penalty units.
The matter was mentioned on 14 October in Parramatta Local Court and was adjourned for further mention on 16 December 2022.
The matter is being prosecuted by the Commonwealth Director of Public Prosecutions following an ASIC referral.
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