Australian Securities & Investments Commission investigation results in charges against NSW director over alleged AUD 1.6m misuse of company funds

The Australian Securities & Investments Commission reported that Vickie Anne Vella of Ropes Crossing, NSW, appeared at the Penrith Local Court charged with dishonestly using her position as a director to gain an advantage for herself. The two charges relate to her roles at Midcoast Reinforcement Pty Ltd (In Liquidation) and Coast Reo Pty Ltd (In Liquidation), under section 184(2)(a) of the Corporations Act 2001. ASIC alleges that between about 4 August 2016 and 5 April 2018 Ms Vella transferred company funds to a credit card and other accounts and used the money for personal purposes, with approximately AUD 1,565,298 transacted or expended. The conduct is alleged to have occurred while Midcoast owed the Australian Tax Office and creditors a total of AUD 797,050, and the companies subsequently went into liquidation owing AUD 797,050 and AUD 1,170,989 to creditors respectively; the maximum penalty at the time of the alleged offence was 2,000 penalty units or five years imprisonment or both. The matter was adjourned to 11 April 2025 for further mention, and is being prosecuted by the Commonwealth Office of the Director of Public Prosecutions. ASIC said it commenced its investigation after receiving a funded report from the liquidator of Midcoast Reinforcement Pty Ltd (In Liquidation), supported by ASIC’s Assetless Administration Fund.