Mr Gavin Keith Hyland has been convicted in the Brisbane District Court on two counts of dishonestly using his position to misappropriate investor funds. In relation to the first count, Mr Hyland was sentenced to two years imprisonment and one year imprisonment for the second count. The sentences are to be served concurrently.
Between 8 March 2010 and 4 November 2010, Mr Hyland was a director of Jacqalex Pty Ltd (Jacqalex) and solicited and received funds from investors for the purpose of trading on their behalf in financial products, including shares, bonds and derivatives.
ASIC's investigation revealed Mr Hyland had dishonestly applied $104,110 of those investors' funds for his own personal use, including personal trading and using the funds to pay his credit card and other personal expenses.
Mr Hyland was taken into custody today and will be released on a recognisance after serving six months. The recognisance is conditioned that he give security of $3000 and be of good behaviour for a period of three years.
As a result of his conviction, Mr. Hyland will be automatically banned from managing a corporation for five years.
ASIC Commissioner John Price said, 'ASIC will not tolerate directors and officers of companies conducting their business dishonestly. ASIC will continue to take enforcement action against directors where they fail to perform their duties with integrity and at the standards the community expects.'
The Commonwealth Director of Public Prosecutions prosecuted the matter.
Background
On 3 May 1996, Mr Hyland was sentenced and imprisoned to an effective sentence of four years and six months for dishonesty offences relating to the misuse of investors' funds, in circumstances where the funds were invested contrary to client instructions.
On 28 August 1996, Mr Hyland was sentenced to a further term of three months imprisonment, to be served concurrently with his earlier sentence, for being involved with the management of a corporation while an undischarged bankrupt.
In September 1996, he was sentenced to a further nine months imprisonment in addition to his earlier sentence, for dishonesty offences relating to Mr Hyland applying superannuation funds for which he had responsibility for his own use.
Mr Hyland was also sentenced in 2003 for a Fraud contrary to the Queensland Criminal Code of having dishonestly applied superannuation funds for which he had responsibility. He was sentenced to a period of 12 months imprisonment and as this offending breached his previous parole order; it was ordered to be served in addition to the May 1996 sentence.
On 16 February 2017, Mr Hyland pleaded guilty to two counts of dishonestly using his position as director with the intention of directly gaining an advantage for himself, contrary to s184(2) of the Corporations Act 2001 (Cth).