Peter Kevin Challis, 59, of Albury, New South Wales, the former Chief Executive Officer (CEO) of WAW Credit Union Cooperative Limited (WAW),has appeared before the Wodonga Magistrates' Court on a criminal charge following an investigation by ASIC.
Between 4 November 2015 and 18 November 2015, WAW conducted elections to fill two vacant board positions. The voting took place electronically, with WAW members using their personal details to gain access to an online portal to cast their vote.
Following the election, the WAW board identified irregularities in the voting, including that a total of 627 ballots had been cast from the same Internet Protocol (IP) address. The board resolved to take steps to identify the owner of the IP address and commenced internal and external investigations of the election process.
ASIC alleges that Mr Challis knew the owner of the IP address from which the ballots were cast and did not inform the WAW board. ASIC alleges that Mr Challis, as WAW CEO, either dishonestly or recklessly failed to exercise his powers and discharge his duties as WAW CEO in good faith in the bests interests of the corporation or for a proper purpose.
Mr Challis has been charged with one count of contravening s 184(1) of the Corporations Act 2001, which attracts a maximum penalty of five years' imprisonment, 2,000 penalty units or both.
The matter has been listed for a committal mention before the Wodonga Magistrates’ Court on 27 November 2018.
The matter is being prosecuted by the Commonwealth Director of Public Prosecutions.
Background
WAW is an unlisted public company that operates as a credit union, with its head office located in Wodonga, Victoria and servicing the geographic areas of north east Victoria and southern New South Wales.
All WAW deposit account customers are also shareholders and entitled to vote in board elections.
During the November 2015 WAW board election, four candidates - Timothy Frazer, David Iverson, Ali Pockley and Tracey Toohey - stood for two vacant board positions. Following the election, Mr Frazer and Mr Iverson were declared the successful candidates and appointed to the WAW board.
In the absence of the votes cast from the single IP address, Mr Frazer would not have been elected to the WAW board while Ms Toohey would have been elected.
In September 2016, Mr Challis resigned as the CEO of WAW.
In July 2018, Mr Neil Evans of Wodonga, Victoria pleaded guilty before the Melbourne Magistrates’ Court to one count of contravening section 247C of the Crimes Act 1958 (Vic) arising from his unuathorised voting in the WAW board election. Mr Evans was placed on a 12-month good behaviour bond, conditional upon him paying $12,000 into the court fund and prohibiting him from providing financial advice to WAW customers for the duration of the bond (refer: 18-208MR).
Editor's note:
On 27 November 2018, the Wodonga Magistrates’ Court set the matter down for a committal hearing to commence on 20 May 2019.
Editor's note 2:
On 3 May 2019, the Wodonga Magistrates’ Court re-listed the committal hearing to commence on 11 November 2019.
Editor's note 3:
On 1 November 2019, the Wodonga Magistrates’ Court adjourned the committal hearing to a date to be fixed.
Editor's note 4:
On 20 May 2020, the Wodonga Magistrate’s Court fixed the committal hearing of the charges against Mr Challis for 2-4 December 2020 and 9-10 December 2020.
Editor's note 5:
The committal hearing was adjourned, part-heard, to 3 March 2021 for a further two days.
Editor's note 6:
The matter has been adjourned until 22 March 2021 for final submissions.
Editor's note 7:
The matter has been adjourned until 24 June 2021 for a decision on committal.
Editor's note 8:
On 3 June 2021, Mr Challis was committed to stand trial at the County Court on one charge of breaching s184 of the Corporations Act. Mr Challis pleaded not guilty. A directions hearing date has been set for 7 July 2021.
Editor's note 9:
On 7 July 2021, Mr Challis appeared before the Wodonga County Court. His case was adjourned for a further directions hearing on 17 August 2021.
Editor's note 10:
On 17 August 2021, Mr Challis appeared before the Wodonga County Court. His case was adjourned for a further directions hearing on 8 December 2021.
Editor's note 11:
The matter has been adjourned to 2 March 2022 at the Wodonga County Court for a further directions hearing.
Editor's note 12:
On 2 March 2022, the matter was adjourned to 13 April 2022 for a further mention.
Editor's note 13:
On 13 April 2022, the matter was adjourned to 11 May 2022 for a s198B Examination Hearing.
Editor's note 14:
On 4 May 2022, the s198 Examination Hearing was vacated and the matter was adjourned to 30 May 2022 for a Directions Hearing.
Editor's note 15:
On 30 May 2022, the matter was adjourned to a Final Directions Hearing on 20 January 2023. Further, the matter has been listed for trial in the County Court of Victoria circuit commencing 14 March 2023.
Editor's note 16:
At the final directions hearing on 21 February 2023, the March 2023 trial date was formally vacated. Further, the matter has now been listed for trial in the County Court of Victoria (Wodonga) circuit commencing on 28 August 2023.
Editor's note 17:
A pre-trial hearing was held on 9 August 2023 before her Honour Judge Leighfield of the County Court of Victoria, following which the Court reserved its decision.