The former managing director of Chameleon Mining, Gregory Barnes, who was jailed for permitting the release of false and misleading information to the Australian Securities Exchange (ASX) has had his conviction quashed.
In April Mr Barnes was found guilty in the New South Wales District Court of providing false and misleading information relating to $3 million purportedly raised by Chameleon during in initial public offer in 2003.
As part of its IPO it was alleged Chameleon represented that it had issued 15 million shares to Zenith Development Company and ACN in consideration for $3 million.
ASIC had contended that Chameleon did not receive payment for the shares issued to Zenith and ACN, and the Mr Barnes and former Chameleon director Landan Roberts continuously represented to the ASX that Chameleon had the $3 million as cash or that it lent the $3 million back to Zenith and ACN.
It was alleged that as a result of the false representation, Chameleon managed to list and trade on the ASX for a period of 13 months without raising the minimum subscription amount.
Mr Barnes appealed to the New South Wales Court of Criminal Appeal.
He contended that the jury's verdict was flawed because there was no evidence at his trial that he knew that the statements particularised in the charges were included in the reports submitted to the ASX.
Further Mr Barnes contended that there was no evidence of the falsity of those statements and that there was no evidence that he knew the statements were false.
Finally he contended that a purported director's minute of 12 February 2004 was wrongly admitted into evidence at the trial.
The appeals judges unanimously agreed on the acquittal.
The judges found that the evidence at the trial did not provide a foundation for the conviction of the Mr Barnes.
They also found there were no circumstances which would warrant the ordering of a new trial.
Following his acquittal Mr Barnes said, "These charges were always suspect and my faith in the equity of the Australian justice system has been restored."
