ASIC has laid charges against the former directors of gold exploration company, Chameleon Mining NL (CHM), for allegedly providing false and misleading information in relation to an Initial Public Offering (IPO).
Mr Landan Roberts of Dee Why, New South Wales, and Mr Gregory Barnes of Waterford, Western Australia, face charges relating to providing false and misleading information to the Australian Securities Exchange (ASX Limited) and the company’s auditor between July 2003 and December 2004.
These charges follow an ASIC investigation launched in February 2005 after a referral from the ASX.
ASIC alleges that Messrs Roberts and Barnes made false or misleading representations concerning $3 million purportedly raised by CHM during an IPO in 2003.
As part of its IPO, CHM represented that it had issued 15 million shares to Zenith Development Company Limited (Zenith) and A.C.N 103850406 Pty Ltd (ACN) in consideration for $3 million. ASIC alleges 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 and CHM’s auditors that CHM had the $3 million as cash or that it lent the $3 million back to Zenith and ACN.
The matter returns to Sydney’s Downing Centre Local Court on 11 December 2007.
The Commonwealth Director of Public Prosecutions is prosecuting the matter.
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