Keith James Flowers, formerly known as Nigel Flowers, of Bathurst, New South Wales, has appeared before Downing Street District Court Sydney and pleaded guilty to one charge of acting dishonestly as a company director and one charge of theft.

Mr Flowers was the director of Flowers Financial Group Pty Ltd (in liquidation) and Flowers Financial Management Pty Ltd (in liquidation), which specialised in providing financial advice to the medical profession.

During 2011, Mr Flowers was a registered financial adviser and engaged in a scheme to raise money to fund a proposed IPO by Avior Australia Ltd (Avior). The scheme raised approximately $1.48 million.

Mr Flowers raised funds from long-term clients of Flowers Financial Management, establishing a trust account called 1Source Wholesale Investments Pty Ltd ITF Avior Pre-IPO Trust (trust account), to which he was the sole signatory, to collect his clients’ funds.

Mr Flowers pleaded guilty to a charge that, between June 2011 and April 2012, he used his position as a director dishonestly, with the intention of gaining advantage for either himself or Flowers Financial Management, by causing the transfer/withdrawal of $179,500 of seed capital.

Mr Flowers also pleaded guilty to a charge that, between April and May 2012, he committed larceny by withdrawing the $30,000 raised for the failed IPO after the float was cancelled. Mr Flowers did not return the funds to investors but stole the money and transferred it to accounts for his own benefit.

In February 2012 Mr Flowers was made bankrupt and in 2014 ASIC permanently disqualified  Mr Flowers from providing financial services and banned him from engaging in credit activities.

Mr Flowers will be sentenced on 30 April 2021 in the Sydney District Court. The matter is being prosecuted by the Commonwealth Director of Public Prosecutions.

Editor's note

On 30 April 2021, the matter was part heard and adjourned to 16 July 2021. Judgment is scheduled to be handed down on 6 August 2021. 

Editor’s note 2:

On 14 July 2021, the sentence hearing for Mr Flowers that was listed for further hearing on 16 July 2021 was vacated and relisted for further hearing on 6 August 2021.

Editor's note 3:

On 5 August 2021, the sentence hearing for 6 August 2021 was vacated and relisted for further hearing on 10 December 2021.

Editor's note 4:

On 12 October 2021, the sentence hearing for Mr Flowers that was listed for further hearing on 10 December 2021 was vacated and relisted for further hearing on 17 December 2021.

Editor's note 5:

On 6 December 2021, the sentence hearing for Mr Flowers that was listed for further hearing on 17 December 2021 was vacated and relisted for further hearing on 11 March 2022.

Editor's note 6:

The sentencing hearing has been adjourned until 8 April 2022.

Editor's note 7:

On 8 April 2022, the sentencing hearing was heard and judgment was reserved. 

Editor’s note 8:

Judgment will be delivered at 2pm on 1 July 2022.

Editor's note 9:

The sentencing of Keith Flowers, listed for 1 July 2022, was rescheduled to 2pm on 14 July 2022.