Ronald Lester Cardwell of Cherrybrook, New South Wales, has been charged with dishonestly using his position as a company officer and failing to comply with a notice issued by ASIC.

Mr Cardwell was appointed members’ voluntary liquidator of Loch-Co No 6 Pty Ltd on 2 December 2013.

Following an ASIC investigation, it is alleged that between 4 May 2015 and 17 March 2016, Mr Cardwell dishonestly withdrew $150,367.12 in 12 separate transactions from Loch-Co's liquidation bank account, for his own financial benefit.

It is also alleged that Mr Cardwell failed to comply with a notice issued to him by ASIC under section 33 of the Australian Securities and Investments Commission Act 2001 (Cth) (“ASIC Act”) requiring him to produce books and records.

This matter was reported to ASIC by registered liquidator Steven Gladman of Hall Chadwick, who was appointed the replacement liquidator to Loch-Co on 17 October 2016 by the NSW Supreme Court, following an application by the members of Loch-Co to have Cardwell removed as liquidator.

The matter was mentioned on 14 October 2022 in the Parramatta Local Court and has been adjourned for further mention on 16 December 2022.

The matter is being prosecuted by the Commonwealth Director of Public Prosecutions following an ASIC referral.

Background

It is alleged that Mr Cardwell’s conduct contravenes:

• Section 184(2)(a) of the Corporations Act 2001, which at the time of the alleged offending, had a maximum penalty of 5 years imprisonment and/or a fine of up to 2,000 penalty units; and
• Section 63(1) of the ASIC Act, which at the time of the alleged offending, had a maximum penalty of 2 years imprisonment and/or a fine of up to 240 penalty units.

Under section 532(4) of the Corporations Act, a members’ voluntary liquidator is not required to be a registered liquidator if winding up a proprietary company. All other types of insolvent external administration must be conducted by a registered liquidator.

Editor's note:

On 16 December 2022, Mr Cardwell appeared before the Parramatta Local Court. The matter was adjourned to 10 February 2023 at the Parramatta Local Court.

Editor's note 2:

On 10 February 2023, this matter was mentioned in the Parramatta Local Court. The matter was adjourned to a committal mention on 14 April 2023.

Editor's note 3:

On 14 April 2023, the matter was adjourned to 5 May 2023.

Editor's note 4:

On 5 May 2023, Mr Cardwell appeared before the Parramatta Local Court. Mr Cardwell pleaded guilty to one count of contravening s184(2) of the Corporations Act, with one count of contravening s63(1) of the ASIC Act to be taken into account at sentence pursuant to s 16BA of the Crimes Act 1914 (Cth). Mr Cardwell was committed to the District Court of New South Wales for sentencing on a date yet to be fixed. The matter was adjourned to 2 June 2023 in the Parramatta District Court.

Editor's note 5:

On 2 June 2023, at the Parramatta District Court, the matter was committed to the District Court of New South Wales on 10 October 2023 for sentencing.

Editor's note 6:

On 15 September 2023, this matter was mentioned in the Parramatta District Court. The matter was listed for sentence on 31 January 2024 in the Parramatta District Court and adjourned to 1 December 2023 for mention.

Editor's note 7: 

On 1 December 2023, this matter was mentioned in the Parramatta District Court. 

Editor's note 8:

The next listing of the matter is for sentence on 31 January 2024.

Editor's note 9: 

On 31 January, there was a sentencing hearing on this matter in the Parramatta District Court. The matter is listed for judgment on 22 February 2024. 

Editor's note 10: 

On 22 February 2024, Mr Cardwell appeared before the Parramatta District Court. Mr Cardwell was convicted of one count of contravening s184(2) of the Corporations Act. The matter has been listed in the Parramatta District Court on 1 March 2024.