Former Australian Capital Reserve directors charged

Three former Sydney-based directors of Australian Capital Reserve (ACR) have been charged with making a false statement to obtain a financial advantage for the company.

Samuel Pogson of Wahroonga, Murray Lapham of Turramurra and Steven Martin of West Pennant Hills appeared in the Downing Centre Local Court on charges brought by the Australian Securities and Investments Commission (ASIC).

ASIC stated that the directors made a statement in ACR’s Prospectus 6, lodged in April 2004, which contained the financial statements of its parent company Estate Property Group — then known as Castle Investment Company (CIC).

ASIC believes that the profit before income tax stated in the prospectus as of 31 December, 2003 took into account sales revenue from transactions that had not occurred before that date.

Pogson has also been charged with one count of making a false or misleading statement in a form lodged with ASIC.

ASIC alleged that Pogson signed a Directors Declaration form stating that the financial statements of CIC gave a ‘true and fair view of the financial position’ at that time, when he knew the figures took into account sales revenues that had not occurred before 31 December, 2003.

The Estate Property Group and its 21 subsidiaries, including its fund-raising arm ACR, went into voluntary administration on 28 May, 2007. ACR raised funds through a series of nine prospectuses offering unsecured deposit notes to the investing public from April 2000 to December 2006.

The matter will return to court on 22 June, 2010.