This article is from the Australian Property Journal archive
QUEENSLAND developer Keith McCoy, of Mount Tambourine Queensland has pleaded guilty in the Brisbane District Court to acting dishonestly.
The charges were brought by the Australian Securities and Investments Commission.
McCoy pleaded guilty to five counts of dishonestly failing to act in good faith in the best interests of Blueprint Finance Company Ltd, (Blueprint Finance) of which he was company secretary between September 2001 and June 2003.
McCoy was sentenced to two years jail on each count to be served concurrently, enter into a three year good behaviour bond and to be released on recognizance on 18 August 2010.
Blueprint Finance was a Brisbane based investment company that provided mezzanine finance for Sydney commercial developments between 2000 and 2003. These properties were being developed by another one of McCoy’s companies, Blueprint Developments (Aust) Pty Ltd, based in Paddington Brisbane.
ASIC alleged that McCoy as company secretary dishonestly failed to register second mortgages over the developments on behalf of Blueprint Finance and concealed the fact that they were not registered and instead used these as securities to gain further finance for his own projects.
Investors in Blueprint Finance lost approximately $11 million as a result of the collapse of Blueprint Developments in May 2003.
McCoy is currently serving a three year jail term on charges of forgery following an earlier ASIC’s investigation of Blueprint Developments. The judge took this into consideration when sentencing. He is currently a bankrupt and banned from managing corporations.
Australian Property Journal
