On 15 June 2021, the Court of Appeal of the Supreme Court of Queensland delivered its decision regarding an appeal against conviction and sentence brought by Mr Andrew Eric Young, a former director of the Kleenmaid group of companies.
The prosecution of Andrew Young arose out of the collapse of the Kleenmaid group. At the time of the collapse, the consolidated debts of the Kleenmaid group amounted to approximately $96 million, which included $26 million owed to customers who had paid deposits for white goods that had not yet been delivered.
Mr Young appealed against all of his convictions on two counts of fraud and 17 counts of insolvent trading delivered in the District Court of Queensland on 10 January 2020 (20-027MR). One of the primary grounds of appeal of Mr Young was that the convictions were unreasonable and not supported by evidence.
The Court of Appeal found that Mr Young’s convictions were neither unreasonable nor unsupported by the evidence. However, the Court of Appeal held that the trial Judge had erred by not referring the question of whether Mr Young was fit to be tried to the jury to decide.
A new trial has been ordered on all 19 counts and the convictions have been set aside.
The matter was prosecuted by the Commonwealth Director of Public Prosecutions (CDPP).
ASIC investigation into Kleenmaid resulted in other successful prosecutions of officers of Kleenmaid for charges of insolvent trading and fraud (15-225MR; 15-283MR; 16-248MR; 16-257MR).
ASIC will continue to pursue criminal action against company officers for egregious governance failures that put at risk companies and the public.
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Decision of the Court of Appeal
Background
In February 2012, the three former directors of the Kleenmaid group including Mr Young, his brother, Bradley Wendell Young (Bradley) and Gary Collyer Armstrong first appeared in court on criminal charges following ASIC’s investigation.
On 4 April 2016, a trial commenced in relation to the charges against Mr Young and Bradley. On day 11 the jury was discharged from returning a verdict in relation to Mr Young. The trial continued in relation to Bradley who was convicted and sentenced.
A second trial commenced in relation to Mr Young on 28 August 2017. Mr Young represented himself at the trial. On day 22 of the second trial the jury was discharged.
Mr Young’s third trial commenced on 16 September 2019. On day 15 of the trial he became self-represented and remained so for the duration of the trial.
Editor's note:
The matter was heard at Brisbane District Court on 25 June 2021 for mention. The matter was adjourned to 9 July 2021 at Brisbane District Court for further mention.
Editor’s note 2:
At the Hearing in the Brisbane District Court on 9 July 2021, the CDPP presented a fresh indictment against Mr Andrew Young, charging one count of fraud under s408C of the Criminal Code (Qld). That count is identical to count 20 on the original indictment. Both indictments were adjourned for mention to 6 August 2021.
Editor's note 3:
The matter was heard at Brisbane District Court on 6 August 2021 for mention. The matter was adjourned to 22 October 2021 at Brisbane District Court for further mention.
Editor's note 4:
The matter was mentioned at the Brisbane District Court on 8 October 2021 at which time the further mention that was listed for 22 October 2021 was delisted. The matter was adjourned for further mention on 26 November 2021 at the District Court in Brisbane.
Editor's note 5:
The matter was mentioned on 26 November 2021. The matter was adjourned for further mention on 27 January 2022 at the District Court in Brisbane.
Editor's note 6:
The matter was mentioned on 27 January 2022 and adjourned for further mention on 17 February 2022 at the District Court in Brisbane.
Editor's note 7:
The matter was mentioned on 17 February 2022 and adjourned for further mention on 3 March 2022 at the District Court in Brisbane.
Editor’s note 8:
On 3 March 2022, the matter was mentioned and adjourned for sentencing on 18 March 2022 in the District Court in Brisbane.