James Stephen Lewis, an accountant implicated in the collapse of Dollarforce Financial Services has been sentenced following an ASIC investigation.
Lewis appeared in the County Court of Victoria, and was subsequently sentenced to 12 months imprisonment for making false and misleading statements and was released on entering a $2000 recognisance to be of good behaviour for a period of 18 months. Lewis will automatically be disqualified from managing any company for 5 years under section 206B of the Corporations Act 2001 and is the second person to be convicted following Dollarforce’s recent collapse. In September, former director of Dollarforce, Clestus Weerappah, was jailed for four years over his role in the collapse of the property development group.
Lewis was found guilty of one charge of making a false or misleading statement or omission in a prospectus lodged with ASIC regarding “incentive payments” made. Peter Kell ASIC deputy chairman has commented on the sentencing that, ”information that is material to investors should be disclosed,” and “Mr Lewis was found guilty of deliberately omitting that an incentive payment agreement had been entered into and that investor funds raised would be paid out to another company.”
Mr Simon Wallace-Smith of Deloitte Touche Tohmatsu was appointed liquidator of a number of companies within the Dollarforce Group, following an application by ASIC.