Mr Ali Hammoud, the director of ERB International Pty Limited (ERB), today was jailed for dishonestly breaching his duties as a director and making false statements.

Appearing before the District Court of NSW in Sydney, Mr Hammoud, of Brighton-Le-Sands, was sentenced to a total period of imprisonment of 2 years, with 12 months to serve, after which he is to be released on the condition that he is of good behaviour for an additional period of 2 years.

In sentencing Mr Hammoud to a term of actual imprisonment, Judge Haesler emphasised that company directors hold important positions of trust and need to be aware that they face jail if they breach that trust and act dishonestly.

ASIC Commissioner John Price said, ‘Directors have a duty to act honestly and with integrity and in the best interests of the company.’

In November 2014, Mr Hammoud, 56, pleaded guilty to one count of dishonestly using his position as a director by misappropriating more than $2.6 million from ERB shortly prior to the company being put into liquidation, and one count of making a false statement to obtain a financial advantage, following an ASIC investigation (refer: 14-315MR).

The Commonwealth Director of Public Prosecutions prosecuted the matter.

Background

In 2014 ASIC successfully took action against the joint liquidators of ERB, Mr Fiorentino and Mr Hamilton before the Companies Auditors and Liquidators Disciplinary Board (14-080MR) and (14-160MR).

During the course of its investigation, the conduct of Mr Hammoud was uncovered.

Since the detection of the offending by ASIC, all creditors of ERB have been paid.