Former managing director of ASX-listed entity, Wintech Group, Kim Wong, has appeared in Melbourne Magistrate’s Court after being arrested on nine criminal charges.
The arrest was in relation to an investigation by the Australian Securities and Investment Commission (ASIC), which alleges that Wong engaged in falsification of Wintech’s books between February 18 and April 27 2009.
According to ASIC, this involved causing false entries to be made in a spreadsheet of shareholders, which was given to Wintech’s shareholder registry service, Registries Limited; and causing false share transfer forms to be created that resulted in the transfer of Wintech shares between shareholders.
Wong was charged with eight counts of contravening section 1307(1) and one count of contravening section 1309(1) of the Corporations Act 2001.
The alleged act occurred before the company announced its intentions to acquire IT distributor Westan in July 2009. The deal was called off a month later when Wintech’s distribution arm, Magnafield Technology Distribution (MTD), went into receivership.
ASIC has also made allegations that Wong authorised, permitted the making available, or gave false or misleading information to the ASX regarding Wintech’s affairs in that he authorised, or made available the shareholder spreadsheet containing false entries to the ASX.
Each of the charges under section 1307(1) of the Act carries a maximum penalty of $11,000 or imprisonment for two years or both. The charge under section 1309(1) carries a maximum penalty of $22,000 or imprisonment for five years or both.
Wong was granted bail subject to the following conditions that a surety of $100,000 be given to the Court; he report twice a week to Kew Police Station; doesn’t attend international points of departure; and surrenders his passport to ASIC.
Wong has been taken into custody pending the posting of the surety.
The matter, which is being prosecuted by the Commonwealth Director of Public Prosecutions, has been set down for a committal mention hearing on May 23.