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11-195AD WA director sentenced in Perth District Court to three years jail
Mr Mark Travis Goldenberg, formerly of West Leederville, Western Australia, has been sentenced to three years and one month jail in the Perth District Court on charges of breaching his duty as a director, brought by ASIC. A reparation order of $1.7 million was also made against Mr Goldenberg.
In June 2011, Mr Goldenberg pleaded guilty to 39 counts of breaching his duties as a director of Mortimer Close Pty Ltd. ASIC alleged that Mr Goldenberg breached his obligations to the company by transferring approximately $1.5 million of investors’ money out of Mortimer Close for his personal benefit.
Investments in Mortimer Close were intended to be used for a land development in Wellard, south of Perth, however, the development never took place.
ASIC Chairman, Mr Greg Medcraft, said Mr Goldenberg put his own interests ahead of the company and investors and in doing so, had breached a fundamental responsibility of directors.
‘ASIC will act to ensure that misconduct by directors and other gatekeepers who fail in their responsibilities to uphold and safeguard the interests of shareholders, investors and other stakeholders are brought to account’, Mr Medcraft said.
Mr Goldenberg’s sentence commences on 18 April 2012, at which time it is expected he will be released on parole following a jail sentence for other offences. He will be required to serve at least 21 months in jail for the ASIC charges. After serving 21 months (i.e. from 17 January 2014), he will be eligible to be released from prison, subject to him signing a recognisance which will allow him to serve out the remaining 16 month sentence in the community. If Mr Goldenberg breaches his recognisance, he will have to pay $10,000 to the Court and return to prison.
The Commonwealth Director of Public Prosecutions prosecuted the matter.
On 26 September 2008, ASIC suspended the Australian financial services (AFS) licence of Concentric Wealth Management (CWM) following the appointment of a receiver and manager. Mr Goldenberg was CWM’s sole director.
On 12 March 2009, the Federal Court ordered the appointment of a liquidator to Mortimer Close. Mr Goldenberg was Mortimer Close’s sole director.
On 19 May 2009, ASIC permanently banned Mr Goldenberg from providing financial services and cancelled the AFS licence of CWM. Mr Goldenberg was formerly employed as an authorised representative of CWM.
On 23 March 2010, ASIC disqualified Mr Goldenberg from managing corporations for five years.
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