The directors of former high flying appliance Company Kleenmaid Andrew & Bradley Young along with Gary Armstrong been charged with defrauding a bank of $13 million and 18 counts of criminal insolvent trading of debts totalling more than $4 million.
The directors appeared today in the Maroochydore Magistrates court in Queensland following an investigation into the collapse of the Company by the Australian Securities & Investments Commission.
The directors have told ChannelNews that they will defend their actions, but at this stage will not comment on what defence they will lodge.
Armstrong and Young have also been charged over a further fraud matter, allegedly withdrawing $330,000 from the Kleenmaid Group’s bank accounts two days before it went into voluntary administration.
Magistrate Walter Ehrich has granted bail to the three on the condition that they do not contact prosecution witnesses or travel overseas without advising the Commonwealth Department of Public Prosecutions.
The case has been adjourned until 17 May 2011.
2 years ago ChannelNews revealed that the Company had engaged in trading while insolvent for up to two years prior to them being placed into administration. At the time we highlighted how the two brother lived a lavish lifestyle despite the Company collapsing.
Luxury cars and boats were being funded by the Company when it collapsed a Deloitte report in 2009 revealed that the company spent $460,000 on boating expenses.