The Australian Securities & Investments Commission (ASIC) announced that Tim Xenos, also known as Efthymios Xenos, former CEO and director of FAL Healthy Beverages Pty Ltd, has been found guilty in the Downing Centre Local Court of making business decisions while disqualified from managing a corporation due to bankruptcy, using his position dishonestly to gain an advantage, and failing to fully and truly disclose information to his bankruptcy trustee. The company sold coconut water beverages under the CoCo Joy brand. The court found that, between 4 November 2013 and 15 September 2015, Xenos made or participated in decisions affecting the whole or a substantial part of the business despite his disqualification, including signing an offer of employment as CEO and receiving a monthly salary of USD 14,500. It also found that, between 14 March 2014 and 24 April 2015, he gained a direct advantage of approximately AUD 111,342.95 by using company funds to pay legal fees and other costs to annul his personal bankruptcy. Between 14 February 2014 and 15 August 2015, he failed to disclose his employment status, salary and material bank accounts to his bankruptcy trustee; the magistrate rejected arguments that decisions were ultimately approved by the Saudi Arabian majority owner, noting he was the sole signatory on FAL Healthy Beverages’ bank accounts. The matter has been adjourned to 11 April 2025 for a sentencing hearing. The prosecution was brought by the Commonwealth Director of Public Prosecutions following an ASIC referral; the convictions relate to offences under sections 206A(1)(a) and 184(2) of the Corporations Act 2001 and section 265(1)(ca) of the Bankruptcy Act 1966, with maximum penalties at the time including up to five years’ imprisonment and/or 2,000 penalty units (AUD 340,000) for dishonest use of position.

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