Westpoint promoter sentenced
Former Westpoint promoter Neil Burnard has received a 12 month suspended jail sentence with good behaviour terms, a decision that the Australian Securities and Investments Commission (ASIC) has appealed.
ASIC has requested the Commonwealth Director of Public Prosecutions (CDPP) consider lodging an appeal following the suspended sentencing, which also saw Burnard receive a fine $50,000.
Burnard was found guilty on May 6, 2008, on nine criminal charges under the Crimes Act of NSW after an investigation by the Australian Securities and Investments Commission (ASIC) into Kebbel Pty Ltd, which formed part of the broader inquiry into the Westpoint collapse.
ASIC alleged Burnard obtained a financial advantage for five Westpoint mezzanine companies, Ann Street Mezzanine Pty Ltd, York Street Mezzanine Pty Ltd, Mount Street Mezzanine Pty Ltd, Bayview Heritage Mezzanine Pty Ltd and Emu Brewery Mezzanine Pty Ltd, by publishing statements that he was a director of a non-existent entity, Kebbel Investment Bank, between July 2003 and November 2004.
According to ASIC, Burnard organised promotional seminars at which investors were persuaded to invest in Westpoint mezzanine companies. The money belonging to the investors who gave evidence at the trial was placed at risk, and ultimately most of the funds were lost in the Westpoint collapse. Investors were afforded none of the protections that come from placing funds with a bank.
The nine charges on which Burnard was convicted relate to six investors who invested a total of $1,175,000.
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