Former Bill Express executive jailed

Peter Couper, the former chief financial officer of On Q Group Limited (the parent of Bill Express), pleaded guilty to fraud-related charges and is heading to jail. The Victorian Court of Appeal found his initial suspended sentence was "manifestly inadequate" and sentenced him to two months' imprisonment after the Director of Public Prosecutions appealed.

Couper pleaded guilty to four charges related to corporate misconduct, including falsifying accounts, giving misleading information to an auditor, and giving misleading information under oath during a public examination by the corporate watchdog.

While in charge of On Q's accounts, Couper falsified records to show Bill Express had recorded $3.5 million in profits from buying and selling Simix shares during two half-year periods in 2007 and 2008 — but in fact no Simix shares were traded.

The Victorian Court of Appeal ruled the original 21-month suspended sentence was "manifestly inadequate." The appeal judges also agreed with the public prosecutor that the "good character" of white-collar offenders should carry less weight in sentencing, because that good character is often what put them in positions of trust.

Australian Securities and Investments Commission (ASIC) deputy chairman Belinda Gibson said lying to the regulator will not be tolerated and that ASIC will "seek jail terms in appropriate cases." The Court of Appeal judgment reinforces that misleading the market and breaching obligations under the Corporations Act can have very serious consequences for company officers who mislead ASIC.

For everyday investors, the case highlights that regulators and courts are prepared to impose custodial sentences for serious breaches and misleading conduct. The judgment reinforces the importance of accurate financial reporting and should reassure investors that misleading practices can result in real consequences for company officers.

The appeal judges' comments signal a shift: courts may place less weight on an offender's "good character" in white-collar cases, and prosecutors like the DPP and ASIC may be more likely to seek jail terms. This suggests a potential trend toward tougher sentencing for corporate misconduct.

The article shows that historical accounts were falsified while Couper managed On Q's accounts, which is a red flag for investors. It underlines the need for investors to be vigilant about company reporting and to pay attention to regulator actions and enforcement outcomes when assessing corporate governance and financial reliability.