BRENTON Strauss, the South Australian grain trader behind failed grain buying business Sapphire, has pleaded guilty to offences under the Corporations Act.
Many grain growers were caught out as unsecured creditors when Sapphire went into administration with debts of around $10 million in 2014.
Mr Strauss pleaded guilty to the charge of acting as an officer of a company while it was under external administration following an Australian Securities and Investment Commission (ASIC) investigation.
In a release issued on Monday ASIC said it found that on 19 March 2014, Mr Strauss issued a variation to a settlement deed between Sapphire and another company after appointment of an Administrator, advising the other party about a change in payment details.
At the time of issuing the variation to the settlement deed ASIC said Mr Strauss was not authorised to make decisions affecting the affairs of Sapphire.
However, in spite of the guilty plea Mr Strauss escaped conviction.
He was handed a $1000, 18 month good behaviour bond.
ASIC said Mr Strauss was initially charged with two counts of breaching his directors duties in July 2016.
Following negotiations between the defendant and the Commonwealth Department of Public Prosecutions, Mr Strauss indicated he would plead guilty to a lesser charge of performing or exercising a function or power as an officer of a company under administration.