Andrew Young, the former director and founder of collapsed whitegoods distributor Kleenmaid, has been found guilty today on 19 charges involving fraud and insolvent trading.
Andrew Young, the former director and founder of collapsed whitegoods distributor Kleenmaid, has been found guilty today on 19 charges involving fraud and insolvent trading.
The verdict follows a long-running trial that had been postponed in October 2017 due to Mr Young’s health.
Today, a District Court of Queensland jury found Mr Young guilty on two counts of fraud and 17 counts of criminal insolvent trading.
The matter was prosecuted by the Commonwealth Director of Public Prosecutions after a referral from the Australian Securities and Investments Commission.
ASIC said Mr Young had dishonestly gained $13 million in Westpac loans in 2007 and initiated a $330,000 transfer from a Kleenmaid company bank account to an account in which Mr Young held an interest, just prior to administrators being appointed.
Deloitte partners John Greig, Richard Hughes and David Lombe were appointed as administrators in April 2009.
Kleenmaid's consolidated debts amounted to approximately $96 million, which included $26 million in customer deposits that had been paid for appliances yet to be delivered, ASIC said.
The regulator said Mr Young was guilty of insolvent trading of debts of $3.5 million relating to two additional Westpac loans in July 2008, as well as debts incurred between October 2008 and April 2009 amounting to more than $750,000.
Mr Young has been refused bail and remains in custody, pending sentencing on February 7.
The verdict follows a similar court action against Kleenmaid directors Gary Armstrong, sentenced to five and a half years' imprisonment, and Bradley Young, sentenced to nine years.
A trial against Andrew Young and his brother Bradley Young had commenced in April 2016 but was discontinued against Andrew Young.
Bradley Young, who was also found guilty of fraud and insolvent trading, has appealed his conviction and nine-year sentence, with judgement pending a decision.
He is not eligible for parole until November 22.
ASIC Commissioner John Price said the regulator would take action whenever a director “fails in their duty to prevent a company from incurring debts while it is insolvent”.
“ASIC will take action, particularly where the director’s conduct has been dishonest and to the detriment of creditors and consumers,” Mr Price said.
