A computer reseller has been jailed for eight months after being found guilty of fraud in the Tasmanian Supreme Court in Burnie, according to an Australian Securities and Investment Commission (ASIC) report.
Leon Kaine, who set up North West Computers soon after he became bankrupt in July 1994, was found guilty of obtaining goods by false pretences and being knowingly concerned with a company acting for a fraudulent purpose. He was also ordered to pay $16,393 within 18 months of his release from jail.
An ASIC spokesperson said the case originated from a complaint by a Sydney-based computer wholesaler, rather than ASIC's surveillance program.
The suppliers delivered computer equipment to North West Computers after receiving falsified bank deposit forms suggesting the company had deposited funds to the supplier's bank account.
The conviction followed the successful prosecution of Kaine in 1997 on an ASIC charge of fraud, at which time he was given a three-month suspended sentence, a three-year good behaviour bond and fined $1500.
"This was a one-off case based on a complaint, but it is part of a trend we have noticed over the last 12 months, mainly of computer resellers based in NSW, but a few in Victoria as well. We'll be keeping our eye on it but it's not really enough to warrant a surveillance program at the moment," the spokesperson said.
ASIC recently took action against Forum Freeway in NSW following complaints of fraud, which resulted in the shutting down and banning of the business, freezing of proceeds and payment of creditors.