Parramatta mortgage broking director convicted of fraudulent concealment

Nicola TrotmanDecember 7, 2020

The director of Parramatta mortgage broking business Preferred Finance Solutions Pty Ltd has been convicted after pleading guilty on October 1 with one count of fraudulent concealment of property from a liquidator.

David John Barrett was charged by ASIC after failing to provide details of a company bank account that was receiving trailing commissions from the loans that had been secured for consumers.

Barrett failed to provide account details to the liquidator until September 2 2008, where the account transactions were approximately $40,000.

“Directors who run companies must do so with honesty. In this instance, the fraudulent concealment of the bank account from the liquidator is an example of a failure to act honestly and ASIC will take action where directors fail to do so," says ASIC Commissioner Greg Tanzer.

Barrett was convicted without passing sentence under section 20(1)(a) of the Crimes Act 1914 (Cth) upon entering into a recognizance release order with a condition to be of good behaviour for two years

As a result of the conviction, Barratt is automatically disqualified from managing corporations for five years.

Nicola Trotman

With a penchant for the written word, Nicola has built a career doing just this – now Creative Director at thriving Melbourne-based PR agency, Greenpoint Media.

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