Former director, COO, charged for conspiracy to deceive auditors

Former director, COO, charged for conspiracy to deceive auditors

A former director and a former chief operating officer have been charged with three counts of conspiracy to falsify accounts following the earlier sentencing of the business former chief financial officer.

Joseph Carmec Farrugia, the former director of Hastie Services Pty Ltd, and Ian Athol Thompson, the former chief operating officer of Hastie Services, appeared before the Downing Centre Local Court charged with two charges of conspiracy to falsify the books and records of Hastie Services and one charge of conspiracy to give false or misleading information to an auditor.

Last month, the former chief financial officer of Hastie Services was sentenced to two years’ imprisonment, to be served by way of an intensive correction order for conspiracy to falsify accounts.

ASIC alleges that between 7 November 2008 and about 30 June 2011, Mr Farrugia and Mr Thompson conspired with two other senior staff members of Hastie Services to make false entries into the books of the company to reduce the "gap" between the forecast Earnings Before Interest and Tax (EBIT) and the actual EBIT.

According to the corporate regulator, between 5 May 2010 and about 13 February 2011, Mr Farrugia and Mr Thompson conspired with two other senior staff members of Hastie Services to make false entries into the books of Hastie Services in order to conceal the true financial position of Hastie Services' Western Australia branch.

The offences both carry a maximum penalty of two years imprisonment.

ASIC further alleges that between 17 June 2010 and about 9 April 2011, Mr Farrugia, Mr Thompson and two other senior officers of Hastie Services conspired to provide false information to the auditors of Hastie Group Limited to conceal the above offences, which carries a maximum penalty of five years imprisonment.

The Commonwealth Director of Public Prosecutions is currently prosecuting the matter.

Former director, COO, charged for conspiracy to deceive auditors
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