A former director of a West Australian company has been jailed for two years after stealing more than $200,000 which he used to pay off personal debts, the corporate watchdog has revealed.
The move is the latest crackdown by the Australian Securities and Investments Commission, which just days ago appointed liquidators to a financial services company whose founder was barred from acting as a director of a business for four years.
Peter Hickey of Cloverdale stole more than $200,000 from investors, and then disposed of them through the Cape Bonbon business. He acted as a director of the company.
It was alleged Hickey then used the money to pay for personal expenses, including mortgages, credit card debts, and for funding a publishing company, Moss Media, of which both he and his wife were directors.
Hickey, who has been declared bankrupt, was convicted in January after a five-day trial.
ASIC deputy chairman Belinda Gibson said in a statement the outcome shows how the watchdog places expectations on directors.
“ASIC expects directors, as key gatekeepers of the financial system, to act honestly and not use their position to advantage themselves,” Gibson said.
“When directors fail to uphold their responsibilities, we will act. We are committed to tracking down and punishing wrongdoers and deterring further misconduct.”
Hickey will be jailed with a non-parole period of 12 months.