Director of the failed Froggy Group, Karl Suleman, has been sentenced to 21 months' gaol and won't be up for parole for a year.
The sentence follows an investigation by the Australian Securities and Investments Commission (ASIC) into the Froggy Group of companies operated by Karl Suleman Enterprizes (KSE).
Jeffrey Lucy, acting chairman of ASIC, said the NSW District Court in Sydney had gaoled Suleman who, after a two-week trial, was found guilty of four charges of fraud by a jury on 5 March.
The sentence would be timed from that date, he said, so Suleman would be eligible for parole 4 March 2005.
ASIC had alleged that Suleman had in late 2000 used a false bank statement to get a loan of $355,000 to buy a Ferrari Spider sports car.
Also, Suleman had in 2001 similarly made false statements to finance brokers with the intent of buying a $3.3 million Princess Motor yacht and a $360,000 Ferrari Modena sports car, ASIC had alleged.
Suleman's Froggy Group had included the Froggy ISP as well as an unregistered managed investment scheme. Froggy Internet was, after Froggy Group's highly publicised collapse, sold to FlowCom, which has since also failed, and then on to rival iiNet.
KSE entered voluntary administration 12 November 2001, soon after ASIC commenced proceedings before the NSW Supreme Court to close down an unregistered managed investment scheme operated by the company, ASIC said.
In 2002, Suleman was ordered to pay $17.4 million in damages to KSE and was afterwards declared bankrupt.
The ASIC investigation is continuing.