Steigrad breaking no rules with overseas jaunt during detention appeal: FMA
By Hannah Lynch
Aug. 22 (BusinessDesk) - Peter Steigrad, director of failed lender Bridgecorp, is on a court-approved trip to trip Europe half way through an appeal of his nine-month home detention sentence.
Steigrad was found guilty on five of the 10 charges relating to making untrue statements in offer documents in April. He filed an application to appeal his sentence after serving just seven weeks of home detention, returning to his home in Sydney on bail. Steigrad is now holiday in Europe.
"Mr Steigrad’s ability to travel, while appealing against his sentence, is a consequence of the operation of the law under the Crimes Act which suspends the sentence when an appeal is sought," an FMA spokesman told BusinessDesk.
The FMA alleged Bridgecorp directors made untrue statements in investment statements and prospectuses between 2006 and 2007. The charges carry a maximum penalty of five years’ imprisonment or a fine of up to $300,000. Civil proceedings were delayed until the conclusion of the criminal case.
Director Rod Petricevic and chief financial officer Rob Roest were found guilty of all 10 charges of breaching the Securities Act. Company chairmen Bruce Davidson pleaded guilty last year and was sentenced to home detention and community service, and paid $500,000 in reparation. Director Gary Urwin also pleaded guilty and is awaiting sentencing.
Bridgecorp collapsed in 2007, owing some 14,000 investors about $459 million. The failed lender’s receivers expect just 3.5 cents in the dollar, or $16.1 million, will be repaid to investors.