Rundle charged over Westpoint role

Perth man Graeme Rundle has been charged by the corporate watchdog over his role as the chief financial controller in the failed Westpoint Group.

The Australian Securities & Investments Commission has alleged Mr Rundle made false statements to a financial institution in May 2004 in support of an application for a $71 million credit facility.

The loan was to fund Westpoint's Scots Church Development at York Street, Sydney, ASIC said in a statement.

Mr Rundle appeared in the Downing Centre Local Court today after being charged with two offences of making a false statement with intent to obtain a financial advantage.

Each offence carries a maximum penalty of five years imprisonment.

The matter returns to court on November 24 and is being prosecuted by the Commonwealth Director of Public Prosecutions.

It was not immediately known if Rundle entered a plea.

He was excused from attending the next hearing.

Westpoint collapsed in February 2006, leaving 4,000 investors out of pocket by a combined $300 million.

The announcementi s below:

Mr Graeme Rundle, of Perth, Western Australia, appeared in the Downing Centre Local Court, Sydney, today in relation to two criminal charges brought by ASIC.

Mr Rundle, 44, was charged with two offences of making a false statement with intent to obtain a financial advantage in contravention of section 178BB of the NSW Crimes Act.

Each offence carries a maximum penalty of five years' imprisonment.

ASIC alleges that in May 2004, Mr Rundle made false statements to a financial institution in support of an application for a $71 million credit facility to fund a Westpoint building project known as the Scots Church Development on York Street in Sydney.

Throughout the period relevant to the offences, Mr Rundle was the Chief Financial Controller of the Westpoint Group of companies. He was also director and secretary of Scots Church Development Ltd and secretary of York Street Mezzanine Pty Ltd. Scots Church Development and York Street Mezzanine were entities within the Westpoint Group of companies.

The Commonwealth Director of Public Prosecutions is prosecuting the matter.

The matter returns to Court on 24 November 2009.