SIGALLA GETS 10 YEARS JAIL FOR STEALING $8.6 MILLION AS DIRECTOR OF TZ LIMITED

ANDREW John Sigalla will spend at least six years in jail for stealing $8.6 million from TZ Limited (ASX:TZL) while he was a director of the company.

Sigalla used the money to pay back debts with bookmaker Tom Waterhouse and to make mortgage payments on behalf of one of his personal companies.

The businessman was found guilty of 24 counts of dishonest conduct on 22 November, and today, in the Supreme Court of NSW, Justice Christine Adamson sentenced him to 10 years jail, with a minimum for size years to serve.

The offences related to transfers of funds from the accounts of TZ Limited between December 2006 and March 2009.

In relation to one of the counts, there was a transfer of TZ Limited shares worth around $500,000 to a company based in Hong Kong.

Justice Adamson said in court today, 'The offending conduct took place over a period of more than two years in circumstances which demonstrated considerable deception, ingenuity, opportunism and greed.'

'Private investment in public companies is a significant aspect of the market economy. If potential investors fear that the directors of public companies will misuse their positions to their own advantage, they will be loath to invest and the market will be deprived of capital which would otherwise have been available.'

ASIC Commissioner John Price says, 'This sentence reflects the gravity of the offending in this case and shows that the courts take offences involving dishonesty by company directors seriously.' 

'This should serve as a timely reminder to company directors about the serious consequences of failing to act with propriety.'

The matter was prosecuted by the Commonwealth Director of Public Prosecutions.

Business News Australia