Former restaurant owner in Adelaide fined $2400 for falsification of books

The former owner of The Crane Japan Restaurant in Glenelg has been spared jail despite paying $47,000 from the sale of his business into his personal bank account and falsifying bank documents to hide the error.

Gaowei Shi deposited the money in his personal bank account in error but used it to pay outstanding debts and staff wages after the company went into liquidation. The restaurant “found itself in financial difficulty” after renovation issues.

“The cost and time of renovations blew out and I was told the project manager misappropriated substantial funds and abandoned the project,” District Court Chief Judge Michael Evans said.

The company was sold in December 2015 and Shi put $47,718.44 of the sale proceeds into his personal account instead of the company’s account. The company went into liquidation and was wound up in March 2016.

When the liquidator questioned where the sale proceeds appeared in the company’s bank account, Shi emailed a false document which appeared to be a business bank account statement showing a transaction for the $47,718.44.

Shi later told the liquidator he paid the money into his personal account in error but had used the money to pay staff wages and suppliers.

Chief Judge Evans said he accepted Shi had not profited but said the offence “undermines the integrity of the system”.

Shi was ordered to pay a $2400 fine.

Sheridan Randall, 17^th May 2019