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The Chief Officers' Network - your business advantage / Management / Biz Law Central / Business Crime / Fraud & Embezzlement / Business Crime: Director charged with using company's assets as security for personal loan

The allegations are fascinating: it is alleged that Duckworth was in sole effective control of the company. It is alleged "

Ocean Keys raised funds from the public in 2006 via an Offer Information Statement seeking to raise AUD5 million for the purpose of undertaking the subdivision and sale of land purchased by the company."

But the land, although purchased, was never subdivided and no development took place.

Although Duckworth has not been charged with any offences relating to unauthorised investment schemes, the plan seems remarkably similar to land banking schemes.

The Ocean Keys land was mortgaged and the borrowed funds were allegedly used by Mr Duckworth for purposes largely unrelated to the company or the property development, say prosecutors.

The company was deregistered in 2010 by regulators. The money has not been repaid and there is an implication (and no stronger than that) that it will not be easily recovered.

Duckworth has been charged with 22 offences of theft.

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