Former Westpoint Group Chief Financial Controller Graeme Rundle appeared in a Sydney local court last week to face criminal charges brought by the Australian Securities and Investments Commission (ASIC).

ASIC alleges Mr Rundle committed two offences of making a false statement with intent to obtain a financial advantage, in contravention of the NSW Crimes Act.

The charges relate to allegedly false statements made by Mr Rundle in May 2004 in support of an application for a $71 million credit facility for the Scots Church Development building project in Sydney.

Each offence carries a maximum five-year jail term.

Perth-based Mr Rundle was Westpoint Chief Financial Controller at the time of the alleged offences and also carried out key roles in two mezzanine companies associated with the project.

Investors had $393 million invested in Westpoint when the group later collapsed in January 2006.

The Commonwealth Director of Public Prosecutions is prosecuting the case against Mr Rundle, which returns to court on November 24. An ASIC spokesman told insuranceNEWS.com.au no plea has been entered at this stage.

Last year Westpoint promoter Neil Burnard was convicted of ASIC’s first criminal charges related to the failed company.

Among other enforcement actions brought by the regulator is an ongoing $273 million compensation claim against Mr Rundle and four other former Westpoint directors.