Former directors sentenced for breach of Corporations Act
Robin Brian Poumako and Ann-Marie Donaldson of South Australia have been sentenced in the South Australian District Court on 44 charges relating to raising funds from the public in breach of the Corporations Act.
Poumako was sentenced to two years and six months jail, and is to be released after 12 months on a good behaviour bond for 18 months. Donaldson was sentenced to 18 months jail but was released on a good behaviour bond for that period.
The two former directors of International Finance Corporation (IFC) were found guilty of aiding the company to make offers of and to issue debentures to investors in breach of the Corporations Act. Twenty-two debentures were offered and issued to investors, who loaned approximately $1.23 million to IFC between July 14 and December 29, 2003.
A company that issues debentures to more than 20 investors, or for more than $2 million, must comply with disclosure requirements of the Corporations Act so that investors are provided with all relevant information to enable them to make a fully informed decision about the investment and its associated risks.
Poumako and Donaldson raised approximately $3 million in the 12 months prior to December 31, 2003, for real estate developments, including the development of the former Fernilee Lodge site in Burnside, South Australia.
IFC is in liquidation.
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