S Central's chief executive has been found guilty of deception and false accounting charges brought by corporate regulator ASIC.
A County Court of Victoria jury found Peter Mavridis found guilty of 33 charges, including 23 counts of obtaining a financial advantage by deception and 10 counts of false accounting under the Victorian Crimes Act. He had pleaded not guilty.
The court found that between January and September 2009, Mavridis "directed the financial controller of the group to submit duplicated and/or falsely inflated invoices to National Australia Bank Ltd under a debtor factoring agreement, which led to credit totalling approximately $4.8 million being advanced to companies within the S Central Group", according to an ASIC statement.
"Debtor factoring involves the assigning of debts that are owed in exchanged for credit advanced by a finance provider. In order to retain ongoing access to bank credit, Mr Mavridis signed end-of month reconciliations that disguised the falsifications and had them submitted to the bank."
Mavridis has been granted bail and is ordered to appear for sentencing in the week commencing 9 November 2015.
It follows the 2013 judgement of S Central financial controller David Cologna, who pleaded guilty to five charges of falsifying the company’s books brought about by ASIC.