The former chief executive of collapsed IT services company S Central, Peter Mavridis, has been ordered to stand trial on deception charges over a $4.8 million line of credit from NAB.
Mavridis’ trial follows the conviction of S Central’s former financial controller, David Cologna, last November for falsifying the company's books. Cologna was sentenced to 12 months' jail in a two-year suspended sentence.
An investigation by corporate regulator ASIC had revealed Cologna submitted duplicated and/or falsely inflated invoices to National Australia Bank under a debtor factoring agreement in 2009, which led to a line of credit totalling $4.8 million being advanced to S Central.
The company’s employees claimed they never received their full entitlements, and a group of disgruntled staff put up a website to follow the movements of S Central managing director Peter Mavridis following the sale.
ASIC yesterday revealed Mavridis would stand trial for deception from September 21 next year, following a two-day committal hearing in Melbourne that wrapped up this week.
The regulator brought the 35 charges - of obtaining financial advantage by deception, false accounting and dishonest use of position as a director - against the 42 year old in April.
The maximum penalty for the first two charges is 10 years imprisonment. Mavridis has pleaded not guilty.
ASIC alleged that the former S Central CEO submitted duplicated and falsely inflated invoices to NAB to secure the line of credit, and falsified documents to support false invoices.