ASIC cleans up after dodgy dotcom directors - News - Business

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This story was printed from ZDNet Australia.
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ASIC cleans up after dodgy dotcom directors

By Staff writers, ZDNet Australia
August 21, 2003
URL: http://www.zdnet.com.au/news/business/soa/ASIC-cleans-up-after-dodgy-dotcom-directors/0,139023166,120277560,00.htm

The former director of a series of de-registered dotcom companies, whose clients included some Victorian Australian Football League teams, has received a jail sentence for fraud.

Andrew Thomson, the former director of dotcom minnow, Dotnet, pleaded guilty in the Country of Court of Victoria to allegations that he used false and misleading information in company documents to raise funds.

Judge Davey ordered Thomson to serve three months of a 12 month jail sentence, after which he will be placed on a two-year, AU$1000 good behaviour bond.

Thomson and former Dotnet co-director, Dale Munckton attempted to raise AU$5 million from investors during 1999 and 2000 with a view to listing on the Australian Stock Exchange.

The Australian Securities and Investments Commission alleged that Thomson attempted to defraud investors by claiming to have perfected technology the company didn't have and backing from a fictional US-based company, World Intranet Work.

ASIC said it is satisfied with the sentences handed down by the court.

"Making statements that are untrue to investors is a serious matter ...it's important that investors can rely upon statements companies make in fund rasing documents and rely on them on being not only true but not misleading," said a spokesperson for ASIC.

One of the companies, Dotnet, (later re-named Sports Australia Media Group) specialised in providing Web sites for sports associations and is understood to have had a number of Victorian AFL teams on its client list.

ASIC began investigating companies controlled by the two directors in February 2001 after receiving complaints from investors.

ASIC laid charges against the pair in January 2002, and they made their first appearance in court Victoria's magistrate court the following August.

At the time Munckton plead guilty and was placed on a AU$2000, 12 month good behaviour bond. Thomson reserved his plea and went on to face 19 charges in connection with the companies' activities.