Following an ASIC investigation, Mr Garry Leonard Matthews, a former director of Carrington Carpet Services Pty Ltd (Carrington) has pleaded guilty to dishonestly and recklessly using his position as a director to cause detriment to the company.

Mr Matthews, of Darwin, used Carrington to operate a carpet business in Mount Waverley, Victoria. ASIC's investigation found that Mr Matthews used his position as the director of Carrington to authorise the withdrawal of numerous bank cheques totalling $1,075,300 belonging to Carrington for his personal use, unrelated to the carpet business operated by Carrington.

Mr Matthews appeared before the Melbourne Magistrates Court on 22 April 2016 and pleaded guilty. He was remanded in custody, but released on bail to appear before the County Court of Victoria for sentencing on 17 August 2016.

Background

Mr Matthews was initially charged on 19 June 2015 with contravening section 184(2) of the Corporations Act, relating to acting dishonestly as a director.

Editor's note 1:

At a hearing on 17 August 2016, the matter was adjourned for sentencing on 25 August 2016.