Former CEO and director of FAL Healthy Beverages Pty Ltd (FAL HB), Tim Xenos, also known as Efthymios Xenos, of Peakhurst, NSW, has been found guilty of making business decisions while disqualified from managing a corporation, using his position dishonestly with the intention of gaining an advantage for himself, and failing to fully and truly disclose information to his bankruptcy trustee.
FAL HB sold coconut water beverages under the brand name CoCo Joy.
The Court Magistrate Susan Horan found that:
- between 4 November 2013 and 15 September 2015, Mr Xenos made or participated in decisions that affected the whole or a substantial part of FAL HB in his capacity as CEO and director, despite being disqualified from managing companies due to his bankruptcy. Her Honour found that the evidence established that Mr Xenos signed an offer of employment for the role of CEO on 4 November 2013, was paid a monthly salary of $14,500 USD and that his actions were consistent with his position as CEO;聽
- between 14 March 2014 and 24 April 2015, Mr Xenos used his position dishonestly and gained a direct advantage of approximately $111,342.95 from FAL HB by using FAL HB funds to pay legal fees and other costs to annul his personal bankruptcy contrary; and聽
- between 14 February 2014 and 15 August 2015, Mr Xenos failed to fully and truly disclose salary payments he received from FAL HB and all material bank accounts that he was required to disclose at the time to his bankruptcy In completing an income questionnaire, Mr Xenos failed to fully and truly disclose his employment status, his salary from FAL HB and all material bank accounts to his bankruptcy trustee. Her Honour found Mr Xenos had intended to not truly and fully disclose the required information at the time.聽聽
Her Honour rejected the defence submission that all decisions Mr Xenos made were ultimately approved by the Saudi Arabian corporate entity which majority-owned FAL HB. Her Honour found that Mr Xenos was the sole signatory of FAL HB bank accounts and that Mr Xenos鈥� communication with his lawyers about the six payments related to his personal bankruptcy demonstrated an involvement beyond administering the payments.
The matter has been adjourned to 11 April 2025 for a sentencing hearing.
The matter was prosecuted by the Office of the Director of Public Prosecutions (CDPP) following a referral from ob体育.
Background
Mr Xenos was found guilty on 27 February 2025 of offences against sections 206A(1)(a) and 184(2) of the Corporations Act 2001 and section 265(1)(ca) of the Bankruptcy Act 1966.
Mr Xenos had earlier pleaded not guilty to the three offences and the matter was heard in the Downing Centre Local Court from 24 November 2023 to 1 December 2023, 29 April 2024 to 3 May 2024 and from 16 September 2024 to 4 October 2024.
At the time of the offending the following maximum penalties applied:
- Section 206A(1)(a) 鈥� 12 months imprisonment and/or 50 penalty units ($8,500.00).聽
- Section 184(2) 鈥� 5 years imprisonment and/or 2,000 penalty units ($340,000.00).聽
- Section 265(1)(ca) 鈥� 12 months imprisonment and/or 60 penalty units ($10,200.00).
Mr Xenos was declared bankrupt from 9 August 2011 to 15 September 2015.