Lyndon Allen Kingston, the former director and CEO of Bananacoast Community Credit Union (BCU), has been convicted on charges of dishonest conduct, the Australian Securities and Investments Commission (ASIC) reported.
On Nov. 12, after a four-week trial in the Brisbane District Court, Kingston was found guilty on multiple counts of misconduct.
Kingston was convicted of two charges related to dishonestly using his position to gain an unfair advantage. He was also found guilty of providing false or misleading information to BCU’s auditor.
However, the jury was unable to reach a unanimous decision on two additional charges, and deliberations on those counts were dismissed.
The former CEO was released on bail while awaiting sentencing, which is scheduled for Dec. 10. The outcome of this sentencing is expected to have significant implications for financial governance and accountability in the sector.
The case was brought forward after an extensive investigation by ASIC, which recently called for a “renewed national discussion” on simplifying regulatory frameworks.
The Commonwealth Director of Public Prosecutions led the case in court, with additional support provided by the Australian Prudential Regulation Authority (APRA). ASIC thanked APRA for its crucial role in uncovering the misconduct.
At the time of the offenses, BCU was a prominent credit union based in Coffs Harbour, New South Wales. In 2019, BCU merged with Police and Nurses Limited, a member-owned bank headquartered in Western Australia. Today, BCU operates as a division of this larger financial institution, ASIC reported.
Visit the ASIC website for the media release.
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