Former Perth director, Andy Kay Hooi Lim, has today been sentenced in the Perth District Court on a fraud charge brought by ASIC.
Mr Lim, 34, of Rivervale, Western Australia, was sentenced to 12 months jail, wholly suspended, having earlier pleaded guilty to one charge of fraudulently inducing an investor to deliver $100,000 to Andean Securities Pty Ltd, a company of which Mr Lim was the sole director. Mr Lim was also ordered to pay a fine of $10,000.
Mr Lim was appointed as a director of Aperio Resources Limited, a gold exploration company focusing on mineral deposits in Burkina Faso, in January 2011. Aperio Resources lodged a prospectus with ASIC in October 2011 for an initial public offering. A 70 year old former client of Mr Lim's expressed an interest in investing $100,000 in the IPO.
ASIC's investigations indicated that Mr Lim had induced this investor to make a cheque for $100,000 payable to Andean Securities, contrary to the instructions in the prospectus, with the intention that he would then use the $100,000 at his own will. Mr Lim then transferred these funds into his private bank account and used them for a mixture of business and personal purposes that were unrelated to the IPO.
ASIC Commissioner John Price said Mr Lim's conduct was contrary to the high standards expected from company directors and breached the trust of his former client.
'ASIC will ensure company directors who act fraudulently and seek to benefit personally are brought to account', Mr Price said. The matter was prosecuted by the Commonwealth Director of Public Prosecutions.
Background
ASIC's investigation into Aperio Resources and the conduct of Mr Lim followed complaints received from investors in Aperio Resources privately and through the IPO. Aperio issued four supplementary prospectuses and the minimum subscription requirements, though lowered, were not met. The prospectus and the supplementary prospectuses expired in November 2012.
Andean Securities held an Australian financial services licence from May 2010 until the licence was voluntarily cancelled in March 2013 by application from Mr Lim. Following the commencement of ASIC's investigation, Mr Lim also voluntarily refunded $100,000 to the investor in March 2013. Andean Securities entered into court-appointed liquidation in May 2013.
Mr Lim first appeared in the Perth Magistrates Court on 27 June 2014 and entered a plea of guilty to the charge. The matter was committed to sentencing at the Perth District Court, and Mr Lim appeared before a Registrar on 22 August 2014. Bail conditions were renewed and the matter was adjourned to a Fast Track list in the District Court for 2 October 2014