Is this Stuarts future. Dodgy Condor Blanco Resources CEO caught for fraud. In the Australian today

Condor Blanco’s ex-CEO Glen Darby faces fraud charges

Former Condor Blanco Mines CEO Glen Darby.

• BEN BUTLER

  BUSINESS REPORTER

  
• 12:00AM MAY 27, 2019
• 2 COMMENTS

The former chief executive of mining explorer Condor Blanco, Glen Darby, faces the prospect of a lengthy stint behind bars after being charged with fraud over allegations he defrauded investors in the company.

Mr Darby, 38, faced Central Local Court in Sydney yesterday, charged with five counts of dishonestly obtaining a financial advantage by deception, an offence that under NSW law carries a maximum jail term of 10 years.

The former high-flyer’s court appearance followed his arrest on Thursday at the Surry Hills police station.

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Mr Darby was on Condor Blanco’s board from early January 2010 until July 6, 2016, when shareholders concerned at the fate of $20 million invested in the company tipped out its entire board and replaced it by one led by activist investor Joshua Farquhar.

The criminal case is separate to an ongoing NSW Supreme Court civil suit in which Condor Blanco accuses Mr Darby of using a series of tax haven companies to siphon millions from the company over the course of a multi-year share fraud scam.

In a statement of claim filed with the court, Condor Blanco claimed lawyer Michael Stafford, a partner at Sydney firm Eakin McCaffery Cox and the company’s chief financial officer, accountant Peter Dunnon also had knowledge of Mr Darby’s alleged wrongdoing.

It is seeking damages from both men.

Mr Farquhar told The Australian Mr Darby’s arrest was related to allegations he took money from Condor Blanco through “illegal transactions over numerous years up until July 2016” to fund a lavish lifestyle.

He said some of the alleged transfers cash withdrawals from ATMs, while others were fund transfers from Condor bank accounts direct to Darby’s own personal accounts.

Mr Darby tipped Condor Blanco into administration two days before Mr Farquhar seized control of the company, but the NSW Supreme Court later found the appointment of Domenic Calabretta “was invalid, void and of no effect”.

Judge Reg Barrett found that in making the appointment Mr Darby “was motivated by an improper purpose of negativing the power and influence of the incoming directors and defeating the will of the members who were about to put those directors into office” and that his fellow director, an alcoholic named Timothy Stops, “simply followed blindly and unquestioningly” in his footsteps.

BEN BUTLER