Former Newcastle director sentenced

Mr Hugh Charles Gordon, of Redheads, New South Wales, the former head of Newcastle investment company, Whet Investments Ltd, was sentenced today in the NSW District Court to eighteen months imprisonment to be released after serving eleven months and then entering into a recognizance to be of good behaviour for two years.

The sentence was stayed and bail continued to the 9 April 2010 to assess whether the offender is suitable to serve his sentence by way of home detention or periodic detention.

On 18 December 2009, following an investigation by the Australian Securities and Investments Commission (ASIC), Mr Gordon was convicted of the following charges:

• one charge of dishonest use of position as a director and improper use of approximately $91,000; and
• three charges of fraudulent concealment or removal of property to the value of approximately $285,000.

The Commonwealth Director of Public Prosecutions prosecuted the matter.

Background
ASIC alleged that Whet Investments, an unlisted public company, raised approximately $10.8 million through the issue of redeemable preference shares to retail investors.

On 10 July 2005 Whet Investments was placed into voluntary administration by its directors. A Deed of Company Arrangement was executed on 21 October 2005. Mr Gordon was declared an undischarged bankrupt on 23 January 2007.

In 2005, ASIC took several civil actions against Whet Investments, Mr Gordon and companies associated with him