Former director of Kleenmaid, Gary Armstrong, has been sentenced to seven years in jail for fraud and insolvent trading, according to reports. In August, Armstrong pleaded guilty in the District Court in Brisbane to one count of fraud and two counts of insolvent trading relating to the company’s collapse in 2009.

Kleenmaid young brothers

On Friday, crown prosecutor David Kent told the court Westpac Bank was approached for loans totalling $16.5 million between 2007 and 2008, despite the directors knowing the company was struggling financially and had been for years.

Kent said Armstrong “knew well what he was doing when he committed these offences.”

“Westpac suffered a direct loss and innocent creditors were collateral damage as a result of propping up a sinking ship,” he said.

In sentencing, Judge Brad Farr told Armstrong he played “a vital and intrinsic role” in the offences but acknowledged he was subservient to the other directors.

The company’s two other former directors, Andrew Young and Bradley Young (pictured above), will face trials at a later date. Armstrong will be eligible for parole after serving two years and four months of his sentence.