Queensland liquidator jailed for seven years after pleading guilty to fraud

David John Leigh, of Sherwood, Queensland, was sentenced late last week before the Brisbane District Court to seven years' imprisonment, and will be eligible for parole after serving 22 months in custody.

ASIC commenced an investigation in February 2018 after misconduct was self-reported at Leigh’s firm.

ASIC’s investigation revealed that between 25 July and 9 November 2017, Leigh, as the co-liquidator of Neolido Holdings, dishonestly redirected $800,000 from the Neolido bank account into a bank account that he controlled. He went on to use the funds for his own purposes.

In February this year, the registration of Leigh as a liquidator was cancelled upon a referral from ASIC. A disciplinary committee also decided that a condition should be imposed on all other registered liquidators that they must not allow Leigh to carry out any of the functions or duties, or exercise any of the powers, of a registered liquidator on their behalf for eight years commencing on 22 February 2019.

"Liquidators must act honestly in the protection and administration of other people’s money. ASIC will continue to act against dishonest conduct and hold offenders to account," said ASIC commissioner John Price.

Upon sentencing, Judge Farr said Leigh "committed a significant breach of trust as a court appointed liquidator" and in referring to Leigh’s financial situation that led him to the offending, he was "uniquely positioned to know what legitimate avenues were available in [his] circumstances but chose not to choose those options".