former chameleon md found guilty

11-December-09 by Edited announcement


The former managing director of Chameleon Mining, Gregory Barnes, has been found guilty of providing false evidence regarding the company's $3 million initial public offer.

Mr Barnes was found guilty yesterday of two counts of providing misleading information by a jury in the NSW District Court.

It follows an earlier guilty plea by former Chameleon director Landan Roberts to three counts of providing false and misleading information.

Following an investigation by the Australian Securities and Investments Commission, Messrs Roberts and Barnes were criminally charged for providing false and misleading information to the ASX between July 2003 and December 2004. The matter was referred to ASIC by the ASX.

ASIC alleged that Messrs Roberts and Barnes made false or misleading representations concerning $3 million purportedly raised by CHM during an initial public offering in 2003. As a result, CHM was listed on the ASX without raising the minimum subscription amount.

As part of its IPO, CHM represented that it had issued 15 million shares to Zenith Development Company Limited and A.C.N 103850406 Pty Ltd in consideration for $3 million.

ASIC contended that CHM did not receive payment for the shares issued to Zenith and ACN, and that Messrs Roberts and Barnes continuously represented to the ASX that CHM had the $3 million as cash or that it lent the $3 million back to Zenith and ACN.

Messers Barnes and Roberts will be sentenced in the NSW District Court on 25 and 26 of March 2010, respectively.