Lyndon Allen Kingston, the former CEO and director of Bananacoast Community Credit Union (BCU), has been sentenced to 18 months’ imprisonment for multiple dishonest acts, ASIC reported.
The Brisbane District Court convicted Kingston on November 12, for crimes committed between December 2015 and August 2017.
Kingston faced charges for using his position to unlawfully benefit from payments made by two BCU contractors. These payments, which bypassed the board’s knowledge and approval, constituted two counts of dishonest conduct.
Additionally, he was found guilty of supplying false and misleading information to BCU’s auditors in an attempt to obscure these payments.
The jury handed down guilty verdicts for four counts, resulting in staggered sentences: nine months for the first count, 18 months for the second, and six months each for counts five and six, served concurrently.
Kingston will serve six months in prison before being released on recognisance, contingent on good behavior for the remaining 12 months.
In delivering the sentence, Judge Carl Heaton emphasised Kingston’s breach of trust.
“You were in a position of trust which you knew, and you exploited,” Heaton said.
The judge criticised Kingston for depriving the BCU board of its ability to ensure proper governance and transparency.
ASIC Chair Joe Longo (pictured below) highlighted the significance of the case.
“Mr Kingston betrayed his position by dishonestly using his role to gain an advantage for himself, then attempting to conceal his wrongdoing,” Longo said.
The offences occurred during Kingston’s tenure as CEO at BCU, a credit union based in Coffs Harbour.
Following an investigation by ASIC, the Commonwealth Director of Public Prosecutions (CDPP) took over the case. While Kingston faced seven charges initially, one was dropped in 2024, and the jury could not reach a verdict on two other counts.
In 2019, BCU merged with Police and Nurses, transforming into a division of the community-owned bank.
ASIC acknowledged APRA’s support in uncovering Kingston’s misconduct.
This case underscores ASIC’s ongoing commitment to addressing dishonest practices within corporate leadership.
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