Former National Transport Insurance (NTI) MD Trevor Smith has been sentenced to 18 months jail on 13 charges relating to his improper use of his position.

Last week Gold Coast-based Mr Smith pleaded guilty in the Southport District Court to the charges, which were brought by the Australian Securities and Investments Commission (ASIC).

In the late 1970s Mr Smith founded an insurance business specialising in broking and underwriting heavy vehicle insurance. This was acquired by NTI in 1986, and Mr Smith was subsequently appointed MD. But ASIC charged that between November 1998 and September 1999, he used his position to facilitate loans of over $5.8 million to Noble House and Kalamata, which were private companies he owned. 

The court was told that Mr Smith tried unsuccessfully to conceal the loans from his other directors. NTI took its own legal action to recover funds from Mr Smith, but over $2.1 million remains outstanding.

Mr Smith will serve a minimum six months, and will then be held to a $10,000 good behaviour bond.