Pre-insolvency adviser sentenced to four and half years imprisonment for money laundering

Former pre-insolvency advisor John Narramore has been sentenced to four and a half years in prison, with a non-parole period of 20 months, at Brisbane District Court. Mr Narramore previously pleaded guilty to one charge of dealing in the proceeds of crime.

In October 2014, Mr Narramore, along with Stephen O’Neill of SME’s R Us, advised Richard Ludwig, a former director of Cap Coast Telecoms Pty Ltd, to engage in activity that would involve the illegal removal of company assets to prevent creditors from having access to these assets (19-047MR).

Messrs Narramore and O’Neill issued fictitious invoices from companies under their control to Cap Coast Telecoms and arranged for $743,050 to be transferred from Cap Coast Telecoms bank accounts to the bank accounts of companies under their control. Messrs Narramore and O’Neill then transferred the funds to Ludwig or his associates.

Once funds had been transferred by Messrs Narramore and O’Neill, Cap Coast Telecoms was wound up on 19 January 2019. At the time, it owed creditors $2,955,128.

In delivering the sentence, Judge Everson found that Mr Narramore’s conduct was a serious example of money laundering, a sophisticated scheme, involving a significant amount of money and motivated by financial gain.

Following sentencing, ASIC Commissioner John Price emphasised ASIC’s commitment to ensuring creditors have access to company assets during insolvency proceedings.

‘ASIC condemns any money laundering by individuals. When a company is about to be wound up, creditors should be entitled to access the assets as a means to being paid what is owed to them.’ said Commissioner Price.

The matter was prosecuted by the Commonwealth Director of Public Prosecutions.


The matter was referred to ASIC through an unfunded supplementary report by the liquidator of Cap Coast Telecoms, Mr Mark Hutchins of Cor Cordis.

On 5 September 2019, Mr Narramore pleaded guilty to one breach of s400.4(2) of the Criminal Code Act (Cth) 1995 for intentionally dealing in proceeds of crime worth $100,000 or more.

Mr Ludwig was charged with one count of intentionally dealing in proceeds of crime and 10 counts of breaching his directors’ duties. He is yet to enter a plea and is due to appear in the Brisbane District Court on 9 December 2019.

Mr O’Neill pleaded guilty to one breach of the Criminal Code 1995 for dealing in proceeds of crime worth $100,000 or more. The matter has been listed for sentence on 27 February 2020.

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