It’s been a long time coming but hopefully there will be some relief for those consumers and staff who fell foul of the collapse of Kleenmaid in April 2009. Six years after the former appliance importer fell on hard times with debts of $100 million and $26 million owed to
customers, ASIC has forced former director Gary Collyer Armstrong to surrender his passport before he faces sentencing on October 2nd after pleading guilty to insolvent trading and fraudulently obtaining a $13 million loan from a bank.
ASIC brought criminal charges against Armstrong and fellow directors, Andrew and Bradley Young. The three were charged with 18 counts of criminal insolvent trading and fraudulently obtaining the $13 million loan. In addition Armstrong and Andrew Young were charged with
withdrawing $300,000 from Kleenmaid’s bank accounts two days before it collapsed.
Interestingly Andrew Young and his wife Linda, sold their Sunshine Coast property in March 2007 for $8 million only for Ms Young to buy a property close by in July 2008 (in her own name) for $3.6 million.
We will wait to see what sentence Mr Armstrong will receive but more importantly you have to ask the question why it’s taken six years for this to happen – and still the Youngs are yet to face their day in court.
We’ll keep an eye on proceedings and let you know of further updates as/when they become available.
