Mr Ali Hammoud, the director of ERB International Pty Limited (ERB), appeared in the Downing Centre Local Court in Sydney on 25 November 2014, following an ASIC investigation.

Mr Hammoud, 55, of Brighton-Le-Sands, Sydney, entered a guilty plea to one count of dishonestly misusing his position as a director and one count of making a false statement to obtain a financial advantage.

ASIC alleged that between 9 August 2007 and 4 March 2008, Mr Hammoud used his position as a director of ERB dishonestly with the intention of gaining a financial advantage for himself, namely by misappropriating $2,609,831.91 from the company for his own use.

ASIC also alleged that between 8 August 2003 and 26 June 2007, Mr Hammoud, with the intent to gain a financial advantage, recklessly made false statements in workers compensation insurance forms by understating the estimated and actual wages of the company. It is estimated that ERB obtained a financial advantage of approximately $338,709.25 as a result of the false statements.

Mr Hammoud was committed to the Sydney District Court where the matter will be mentioned on 5 December 2014.

A breach of directors' duties carries a penalty of five years imprisonment and/or a fine of $220,000. Making a false statement to obtain a financial advantage carries a penalty of five years imprisonment and/or a fine of $22,000.

The Commonwealth Director of Public Prosecutions is prosecuting the matter.

Background

ASIC’s investigation into Mr Hammoud arose during the course of its investigation into the conduct of Mr Pino Fiorentino and Mr William Hamilton, the former joint liquidators of ERB. Both Mr Fiorentino and Mr Hamilton were the subject of Companies Auditors and Liquidators Disciplinary Board proceedings brought by ASIC (refer: 14-080MR and 14-160MR).

Editor's note:

The matter was was before the District Court on 27 February 2015 and was relisted for hearing on 16 July 2015.