media release (14-165MR)

Healthzone directors charged with $1 million fraud

Published

Two directors of Healthzone Limited (in liquidation) have been charged with conspiring to defraud the company of $1m, following an ASIC investigation.

ASIC alleges the conspiracy took place between 18 March 2011 and 17 November 2011 and involved Peter David Roach, 53, and Ge Wu, 35.

Mr Roach, of Burradoo, New South Wales, appeared before Sydney’s Downing Centre Local Court on 15 July 2014 charged with one count of conspiring to defraud. He has also been charged with two counts of making false statements to the Australian Securities Exchange (ASX).

Mr Roach did not enter any pleas.

Mr Wu, who was overseas at the start of ASIC’s investigation, returned to Australia on 13 June 2014 and was arrested by the Australian Federal Police on 21 June 2014 after ASIC successfully applied to the court for an arrest warrant. He appeared at Sydney’s Central Local Court on 23 June 2014 charged with one count of conspiring to defraud.

Mr Wu, of Newington, New South Wales, did not enter a plea and was granted bail subject to a number of conditions including surrendering his passport.

Both matters have been adjourned to the Downing Centre Local Court on 12 August 2014.

ASIC alleges Mr Roach and Mr Wu conspired together to obtain a $1 million loan for Mr Roach from Healthzone with the stated purpose to buy shares in Healthzone. ASIC alleges Mr Roach used the money for personal benefit.
ASIC’s investigation is continuing.

The Commonwealth Director of Public Prosecutions is prosecuting the matter.

Background

On 14 June 2011 Healthzone issued a media release and change of director’s interest notice to the ASX stating Mr Roach had bought more than 800,000 Healthzone shares. ASIC alleges Mr Roach had not bought the shares.

Mr Roach and Mr Wu have been charged under section 192E of the Crimes Act 1900 (NSW). The maximum penalty is 10 years jail.

Mr Roach also faces a maximum penalty of five years jail or a fine of $34,000, or both for each charge of making false statements to the ASX.

Healthzone listed on the ASX in November 2006 and was delisted when it was placed into administration and receivership in November 2011. The company went into liquidation in March 2012.

Editor's note:

On 12 August 2014 Mr Roach and Mr Wu appeared before Downing Centre Local Court. Mr Roach was charged with an additional 6 counts of falsifying company books.

These matters have been adjourned to the Downing Centre Local Court on 23 September 2014 for further mention.

Mr Wu made an application on 12 August 2014 for a variation to his bail conditions. The application was dismissed and the previous conditions remain in force.

Editor's note 2:

Both matters were mentioned in the Sydney Magistrates Court on 23 September 2014 and have been set for further mention on 11 November 2014.

Editor's note 3:

Both matters were mentioned in the Sydney Magistrates Court on 11 November 2014 and have been set for a further mention on 9 December 2014.

Editor's note 4

Both matters were mentioned on 9 December 2014 and stood over to 13 January 2015  for further mention.

Editor's note 5:

Both matters  were mentioned on 13 January 2015. Mr Wu's matter has been stood over to 24 February 2015 for further mention. Mr Roach's matter has been stood over to 10 March 2015 for further mention.

Editor's note 6:

On 10 March 2015 the matters in relation to  Mr Roach and Mr Wu were adjourned until 7 April  2015 for further mention.

Editor's note 7:

On 7 April 2015 the matters in relation to Mr Wu were adjourned to 28 April 2015 for further mention in the Sydney Magistrates court. Mr Roach has waived the committal proceedings for these matters which have been transferred to the Sydney District Court for mention on 17 April 2015.

Editor's note 8:

On 17 April 2015 Mr Roach appeared in the District Court and the matter was listed for 8 May 2015.

Editor's note 9:

On 8 May 2015, the matter was adjourned to 10 July 2015, with the Crown having leave to bring the matter back earlier. The Crown is to file the indictment on or before 10 July 2015.

Editor's note 10:

On 10 July 2015 the matter for Mr Roach was stood over for mention on 4 September 2015.

Editor's note 11:

On 4 September 2015 the matter of Mr Roach was heard and was listed for trial on 9 May 2016.

Editor's note 12:

On 8 January 2016 the matter was listed in the District Court for trial on 11 July 2016.

Editor's note 13:

On 1 April 2016, the trial was re-listed for 14 November 2016.

Editor's note 14:

On 15 November 2016, the trial of Mr Roach was vacated and re-listed to commence on 7 August 2017. 

 

 

 

 

Media enquiries: Contact ASIC Media Unit