jail

It would be nice to see ASIC take their efforts to our friends here and get a similar outcome...
Chameleon directors jailed over float details
Rebecca Urban From: The Australian April 10, 2010 12:00AM
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TWO former Chameleon Mining executives have been sentenced to prison by the NSW District Court, convicted of permitting false and misleading information to be released to the market.

Former managing director Greg Barnes was sentenced to nine months jail, with a non-parole period of six months. Former director and company secretary Landan Roberts was sentenced to eight months, with a minimum five months to be served, after pleading guilty.

Both have been granted bail pending appeals, Barnes against the conviction and Roberts against his sentence.

The sentencing follows an Australian Securities & Investments Commission investigation of allegations that the pair provided the Australian Stock Exchange with false and misleading representations about $3 million purportedly raised by Chameleon during its 2003 float.

As part of the float, the gold exploration company claimed it had issued 15 million shares to Zenith Development Company Limited (Zenith) and a company named ACN 103850406 Pty Ltd.



ASIC contended Chameleon did not receive payment for the shares issued to the two groups, and that Barnes and Roberts had continuously represented to the Australian Stock Exchange that the company had the $3m, or that it lent the money back to Zenith and ACN.

It was alleged that as a result of the false representations, Chameleon listed and traded on the exchange for 13 months without raising the minimum subscription.

Barnes's appeal against the conviction is scheduled for a hearing in May.