Former Teac CFO given two-and-a-half year jail sentence

By Chris Nicholls

MELBOURNE: The County Court of Victoria today sentenced former Teac Australia chief financial officer Kenneth Evans to two years and six months imprisonment, wholly suspended for three years, following a guilty plea by Evans in August 2007. 

Evans pleaded guilty to five contraventions of the Corporations Act, including two counts of failing to act in good faith in the best interests of TEAC Australia, one count of dishonestly using his position as a director of TEAC Australia, one count of falsifying company books and one count of providing false or misleading information to the auditor of TEAC Australia.

The Court was told Evans dishonestly failed to exercise his powers as a director in Teac Australia’s best interests by failing to register securitisation documents and enforce Teac Australia’s rights in relation to a loan provided to a private company of Teac’s chief executive officer and principal, Gavin Muir (deceased).

Evans also dishonestly used his position as a director to reduce the amount outstanding on the loan on the eve of the appointment of administrators to Teac Australia and also gave false or misleading information to the auditors over the value of Teac’s debtors.

Despite pleading guilty, Evans attributed responsibility to Muir, claiming he was merely a senior employee carrying out the instructions of the company’s principal.
 

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