Australian Securities & Investments Commission reports sentencing of former Coco Joy CEO for disqualified management and misuse of AUD 111,392 in company funds

The Australian Securities & Investments Commission (ASIC) reported that Tim Xenos, former CEO and director of FAL Healthy Beverages Pty Ltd (Coco Joy), was sentenced in the Downing Centre Local Court in Sydney to 18 months’ imprisonment to be served by way of an Intensive Corrections Order (ICO) after convictions for managing a company while disqualified and dishonestly using company funds for personal expenses. Following a contested hearing, the court found Mr Xenos guilty of managing a company while bankrupt in breach of section 206A(1)(a) of the Corporations Act 2001, dishonestly using his position to gain a financial advantage of approximately AUD 111,392 in breach of section 184(2) of the Corporations Act 2001, and deliberately failing to disclose income and bank accounts to his bankruptcy trustee in breach of section 265(1)(ca) of the Bankruptcy Act 1966. The sentencing court imposed an additional ICO condition requiring 200 hours of community service and, as a result of the conviction, Mr Xenos is automatically disqualified from managing companies for five years until 27 February 2030. The matter was prosecuted by the Commonwealth Office of the Director of Public Prosecutions following a referral from ASIC. Mr Xenos has filed an application to appeal the conviction and sentence on an all-grounds basis.