Gambling Motivated Fraud Leads to Company’s Liquidation

According to a media release by the Australian Securities and Investments Commission today, a Director of a company has been charged with deception offences relating to the misuse of a corporate credit card to gamble away more than $3 million resulting in the company going into liquidation.

This is consistent with research Warfield & Associates has conducted on the impact of gambling motivated fraud or organisations and individuals. For further information about our research go to the publications section of our website as follows – https://warfield.com.au/publications/.  Should you want to discuss how we are able to reduce the risk of fraud negatively impacting your business, please refer to our services section of warfield.com.au as follows – https://warfield.com.au/our-services/.

The ASIC media release is as follows:

’20-241MR Former director pleads guilty to fraud

Following an ASIC investigation, Mr Jaicome Spinella, of West End, Queensland, pleaded guilty to a charge of obtaining financial advantage by deception.

Mr Spinella is the former director of Bauen Concrete Pty Ltd ACN 609 560 492 (Bauen), a company that provided services to the building and construction industry.

ASIC’s investigation found that between December 2016 and July 2017, Mr Spinella fraudulently used a credit card issued to Bauen to access $3,131,718.82 to wager bets through a digital gambling account.

As a result of Mr Spinella’s conduct, Bauen was unable to pay its liabilities and placed in liquidation on 25 July 2017.

At the time Bauen Concrete was placed in liquidation it had 166 creditors owed $6,738,523.

Messrs Shane Deane and Nicholas Giasoumi of Dye and Co. were appointed liquidators. ASIC commenced its investigation after receiving a supplementary report from the liquidators.

The report was funded through the Assetless Administration Fund.

Background

The matter was heard in the Melbourne Magistrates’ Court on 30 September 2020. Mr Spinella was bailed with special conditions, to appear at the County Court on 18 February 2021 for sentencing.

Mr Spinella was charged with 1 count of obtaining financial advantage by deception contrary to section 82(1) of the Crimes Act 1958 (Vic). The charge carries a maximum penalty of 10 years imprisonment.

The matter is being prosecuted by the Commonwealth Director of Public Prosecutions.’