Friday 22 August 2008

Westpoint promoter gets suspended sentence

A promoter for the collapsed company Westpoint has been given a suspended jail sentence after being found guilty of deceiving investors.

In May, Sydney man Neil Burnard was found guilty of nine criminal charges following an investigation by the Australian Security and Investments Commission (ASIC).

The New South Wales District Court has heard he deceived investors into putting the total of more than $1 million into the Kebbel Investment Bank, an entity that did not exist.

The court heard that Kebbel was a mezzanine company that channelled money into Westpoint in exchange for a commission.

The 48-year-old was given a 12-month suspended jail sentence and fined $50,000.

The judge said while Burnard knew he was stealing with unsophisticated investors, he played no direct role in the collapse of Westpoint and is unlikely to re-offend.

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