Former Voicenet (Aust) Ltd managing director Alan Dawson has been convicted on two counts of failing to act honestly in the discharge of his duties as a director.
Former Voicenet (Aust) Ltd managing director Alan Dawson has been convicted on two counts of failing to act honestly in the discharge of his duties as a director.
The charges against Mr Dawson, of Perth suburb Mosman Park, were brought by the Australian Securities and Investments Commission and the case was heard in the Perth District Court.
The company endured a chequered record during his tenure at the helm.
After starting out as a dot-com darling with shares peaking at in-excess of three dollars, it became the source of a litany of woes including under performing sales and contracts that were not as firm as the market was led to believe.
Many of these problems related to the company's once-hyped South American business, where results had not matched expectations and there had been difficulties in obtaining reliable information.
At the time Mr Dawson then in the role of managing director had predicted the South American deal would generate revenue of $1 billion.
Mr Dawson became Voicenet managing director and chief executive in January 1999 and resigned on December 31 2000.
Voicenet was the corporate reincarnation of Southern Group Ltd. The corporate entity has since changed its name to AFT Corporation Ltd.
The ASIC action against Mr Dawson stems from an investigation which revealed he had failed to ensure that Voicenet received payment of $1 million from his private company Property Corp International Pty Ltd, for the conversion of two million Voicenet options, into ordinary Voicenet shares.
Property Corp also acquired one million free bonus options on 14 July 1999 as a result of being registered as the holder of two million Voicenet shares.
Specifically, ASIC found Mr Dawson sold a number of shares and free bonus options in October and November 1999 and used the proceeds to purchase a private residence at 45 View Street, Peppermint Grove in Perth.
ASIC alleged that the $1 million payment from Property Corp was made four and a half months after the options were exercised, during which time Mr Dawson profited from the sale of Voicenet shares and the free bonus options.
Dawson's sale of shares and options resulted in a total gain of approximately $4.5 million.
Mr Dawson has been remanded on bail to be sentenced on February 28 2006 in the Perth District Court. The matter is being prosecuted by the Commonwealth Director of Public Prosecutions.
At the time the charges were laid, a freeze order was placed over the private residence at Peppermint Grove and other assets under the Commonwealth Proceeds of Crime Act, which prevented him from disposing of his interest in the property, pending determination of the charges.
Below is the ASIC announcement:
FORMER VOICENET DIRECTOR CONVICTED
Former managing director of Voicenet (Aust.) Ltd (Voicenet), Alan Raymond Dawson, has
been convicted on two charges brought by the Australian Securities and Investments Commission (ASIC).
Mr Dawson, formerly of 45 View Street, Peppermint Grove, Western Australia, now of 15 Monument Street, Mosman Park, was found guilty in the Perth District Court on two counts of failing to act honestly in the discharge of his duties as a director of Voicenet.
ASIC took action against Mr Dawson following an investigation which revealed he had failed to ensure Voicenet received payment of $1 million from his private company Property Corp International Pty Ltd (Property Corp), for the conversion of two million Voicenet options, which expired on 30 June 1999, into ordinary Voicenet shares.
Property Corp also acquired one million free bonus options on 14 July 1999 as a result of being registered as the holder of two million Voicenet shares.
ASIC alleged that the $1 million payment from Property Corp was made four and a half months after the options were exercised, during which time Mr Dawson profited from the sale of Voicenet shares and the free bonus options. Specifically, ASIC found Mr Dawson sold a number of shares and free bonus options in October/November 1999 and used the proceeds to purchase a private residence at 45 View Street, Peppermint Grove.
Dawson's sale of shares and options resulted in a total gain of approximately $4.5 million.
Mr Dawson has been remanded on bail to be sentenced on 28 February 2006 in the Perth District Court.
This matter is being prosecuted by the Commonwealth Director of Public Prosecutions (CDPP).
Background
At the time the charges were laid, ASIC and the CDPP, in conjunction with the Australian Federal Police (AFP), obtained a freezing order over the private residence of Mr Dawson at Peppermint Grove and other assets under the Commonwealth Proceeds of Crime Act, which prevented him from disposing of his interest in the property, pending determination of the charges. The property at 45 View Street, Peppermint Grove, was originally acquired in 2000 for $3.1 million and sold at auction in 2005 for $3.8 million. The Insolvency and Trustee Service (ITSA) currently holds cash proceeds from the property pending the settlement of the Proceeds of Crime Act application.
