The former accountant and company secretary for Bustan Australia Holdings Pty and Bustan International Pty Ltd (the Bustan Group), Ms Claire Horsman, has been sentenced today in the County Court of Victoria to two years and six months imprisonment after pleading guilty to three criminal charges brought by ASIC.

Ms Horsman will serve a minimum of eight months imprisonment with 19 months of the sentence suspended.

Ms Horsman, a resident of Windsor in the United Kingdom, was responsible for the Group’s financial reporting obligations between 1999 and 2001.

ASIC alleged Ms Horsman was responsible for falsely representing Bustan’s financial position in monthly reports provided to its bankers to ensure the continuation of its financial facility. ASIC also alleged Ms Horsman falsely represented the financial position of the Bustan Group to its financiers in the 2000 and 2001 financial statements and provided information to Bustan’s auditors which was false or misleading.

ASIC’s investigations found that the actions of Ms Horsman had the effect of materially overstating the market value of the current assets to its lenders, HSBC Bank Australia Limited and Rabo Australia Limited. This, in turn, resulted in the continuation of a syndicated banking facility in misleading circumstances.

Further details are available at ASIC.