Ronald Lester Cardwell from Cherrybrook, New South Wales, has been convicted and sentenced to a 24-month imprisonment term to be served via an intensive correction order (ICO), following an ASIC investigation.
The sentence comes after Cardwell pleaded guilty to dishonestly using his position as a members’ voluntary liquidator to extract $150,367.12 from the company Loch-Co No 6.
ASIC’s inquiry revealed that Cardwell, who was not a registered liquidator, made 12 separate unauthorised transactions between May 2015 and March 2016 for his own financial gain.
His actions not only breached the Corporations Act but also failed to comply with an ASIC notice requiring the production of books and records, further compounding his legal violations.
The sentencing court has imposed strict conditions on Cardwell during the ICO period, including a prohibition against committing any offence, undergoing supervision, and completing 150 hours of community service.
Additionally, Cardwell faces a potential home detention condition, with the court awaiting a report from community corrections to decide on this matter.
The malpractice was reported to ASIC by Steven Gladman of Hall Chadwick, who was appointed as the replacement liquidator following a NSW Supreme Court order. As a direct result of his conviction, Cardwell is now disqualified from managing corporations for five years.
The case is set to continue with a court hearing on April 4 to review the report on the home detention condition.
At the time of Cardwell’s offences, the Corporations Act prescribed a maximum penalty of five years imprisonment or a fine for misuse of position. Under certain conditions, a members’ voluntary liquidator is not required to be a registered liquidator, a loophole Cardwell exploited to his advantage.
Access the ASIC media release here. For other recent ASIC stories, click here and here.
Get the hottest and freshest mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
