FAI accountant gets suspended sentence
Former FAI General Insurance accountant Ashraf Kamha received a suspended six-month prison sentence in the NSW Supreme Court on Friday for his part in producing fraudulent company accounts.
Mr Kamha had pleaded guilty to being privy to a fraudulent alteration of the accounts of FAI. Evidence showed that in January 1998 FAI claim estimates were altered to reflect a reduction in liability of around $24 million.
FAI then reported a trading profit of $3 million for the half year to December 31 1997, when it should have booked a loss of almost $8 million.
NSW Supreme Court Justice Michael Grove said it was not Mr Kamha’s decision to make the adjustment, but he gave the necessary instructions for it to proceed.
Justice Grove said while Mr Kamha was initially unaware of the fraudulent action, his guilty plea reflected that he later knew of it. He noted Mr Kamha’s difficult family circumstances and previous lack of convictions in handing down a wholly suspended six-month sentence.
Mr Kamha was also placed on a 12-month good behaviour bond.
Mr Kamha had pleaded guilty to being privy to a fraudulent alteration of the accounts of FAI. Evidence showed that in January 1998 FAI claim estimates were altered to reflect a reduction in liability of around $24 million.
FAI then reported a trading profit of $3 million for the half year to December 31 1997, when it should have booked a loss of almost $8 million.
NSW Supreme Court Justice Michael Grove said it was not Mr Kamha’s decision to make the adjustment, but he gave the necessary instructions for it to proceed.
Justice Grove said while Mr Kamha was initially unaware of the fraudulent action, his guilty plea reflected that he later knew of it. He noted Mr Kamha’s difficult family circumstances and previous lack of convictions in handing down a wholly suspended six-month sentence.
Mr Kamha was also placed on a 12-month good behaviour bond.