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19-097MR South Australian director pleads guilty to falsifying company books
Restaurateur Mr Gaowei Shi (Mr Shi), of Highbury, South Australia, has pleaded guilty to one charge of falsifying company books.
An ASIC investigation found that Mr Shi, director of The Crane Japan Restaurant (SA) Pty Ltd (the Company), a restaurant in Glenelg, South Australia, entered into a purchase and sale agreement in December 2015 to sell assets of the Company to East and West Venture Pty Ltd for $100,000. Mr Shi redirected approximately $47,000 of the sale proceeds to his personal account.
ASIC found that Mr Shi falsified the Company’s bank statements to show that the $47,000 was deposited into the Company bank account.
The Company entered liquidation on 9 March 2016 and the liquidator, Peter Lanthois of DuncanPowell reported Mr Shi’s conduct to ASIC.
At the time of liquidation, the Company owed creditors approximately $328,000.
The matter is being prosecuted by the Commonwealth Director of Public Prosecutions (CDPP).
Mr Shi was charged with breaching section 1307 of the Corporations Act which carries a maximum penalty of two years jail.
On 22 February 2019, Mr Shi pleaded guilty in the Adelaide District Court.
On 11 April 2019, sentencing submissions were made by both the CDPP and Mr Shi.
The matter has been adjourned to 16 May 2019 for sentencing.
Editor's note 1:
On 16 May, Mr Shi was convicted on one charge of falsifying company books and fined $2400.