Stephen Robert Allen, the sole director of K.H.N Holdings Pty Ltd trading as Alkemade & Associates, was sentenced to serve a Community Correction Order of 70 hours over 12 months and fined $20,000 for making false statements to induce others, by the Melbourne County Court on 29 July 2024.
Mr Allen was also convicted and fined $2,500 for making a statement knowing it to be false.
Mr Allen operated accounting business Alkemade & Associates and held accounting qualifications and memberships, but he has never been a registered company auditor and K.H.N Holdings Pty Ltd has never been an authorised audit company.
An ASIC investigation found Mr Allen falsified the signatures of registered company auditors on over 80 documents relating to audits of the financial accounts of 12 separate clients between 2015 and 2020.
Further, on 10 February 2021, Mr Allen falsified a document by purporting to be a registered company auditor and lodged that document to obtain consent from ASIC to resign as auditor of one of those audit clients.
Mr Allen was charged with making falsified documents under s83A(1) of the Crimes Act 1958 (VIC) and for lodging a document with ASIC containing a materially false or misleading statement contrary to s1308(1) of the Corporations Act 2001 (Cth).
ASIC Deputy Chair Sarah Court said, ‘Mr Allen acted dishonestly and failed to comply with the Code of Ethics for Professional Accountants which establishes the key principles of integrity, professional competence, behaviour and due care. This criminal outcome highlight’s ASIC’s focus on auditor misconduct to maintain trust and confidence in the audit community.’
His Honour Judge Parrish noted that but for Mr Allen’s early guilty plea, he would have sentenced Mr Allen to 18 months' imprisonment.
The matter was prosecuted by the Commonwealth Director of Public Prosecutions after an investigation and referral by ASIC.
Background
Mr Allen cooperated with ASIC’s investigation, made certain admissions, and agreed to a statement of facts.
Mr Allen was arraigned and pleaded guilty to the charges when the proceedings were commenced in the County Court by direct indictment on 24 July 2023 (23-170MR).
After the commencement of these criminal proceedings, the Tax Practitioners Board (TPB) terminated Mr Allen’s tax agent registration for a period of two years effective from 22 January 2024. The TPB found Mr Allen had breached the Code of Professional Conduct in the Tax Agent Services Act 2009 (Cth) and that he no longer met the registration requirement that he must be a fit and proper person.
On 27 May 2024, this matter was heard at a plea hearing in the Melbourne County Court before Judge Parrish. Mr Allen was arraigned and plead guilty on both charges. The Court heard submissions from the Crown and defence regarding sentence.
On 19 July 2024, this matter was heard at a further hearing in the Melbourne County Court before Judge Parrish who sought further clarifying information and heard submissions from the Crown and defence.