The former financial controller of defunct S Central, David Cologna, has been sentenced to 12 months jail following charges of falsifying the company’s books.
The charges were brought upon him by the Australian Securities and Investments Commission (ASIC) in the Melbourne County Court.
According to a statement from ASIC, Cologna pleaded guilty on November 18 to five charges of falsifying the books of companies within the S Central group contrary to section 1307 of the Corporations Act 2001.
This included S Central Pty Ltd, S Central (NSW) Pty Ltd, S Central Products, Expressapps and Infotronics.
ASIC’s investigation found that between January and August 2009, Cologna submitted duplicated or falsely inflated invoices to National Australia Bank under a debtor factoring agreement. This led to credit totalling approximately $4.8 million being advanced to companies within the S Central Group.
According to ASIC investigations, Cologna didn’t receive any direct personal financial benefit from his conduct. He was sentenced to 12 months jail and suspended for two years.
The S Central Group entered into liquidation at various times between November 2009 and April 2010, and left total deficiencies in excess of $7 million.
This matter was prosecuted by the Commonwealth Director of Public Prosecutions.
Brennan IT bought S Central's business assets in November 2009.