Sapphire director appears before court

A statement from ASIC said Mr Strauss appeared on two charges, brought by ASIC, of breaching his directors’ duties.

ASIC has alleged the Murray Bridge man failed to exercise his powers as a company director in good faith and in the best interests of a corporation and also used his position dishonestly with the intention of gaining an advantage for another person.

The corporate watch-dog said at the time of the alleged conduct in March to April 2014, Mr Strauss was a director of grain trading business Sapphire, which traded under the name of River City Grain Co.

The first charge from ASIC alleges Mr Strauss reassigned grain contracts between Sapphire and another company without the knowledge or consent of the other company, prior to placing Sapphire in voluntary administration.

The second charge alleges he directed monies that were due and payable to Sapphire to another company knowing that the other company had no entitlement to the monies.

The charges were brought against Mr Strauss following an ASIC investigation into his conduct as the director of Sapphire, a statement said.

“Mr Strauss did not enter a plea but asked for an adjournment to obtain legal advice,” ASIC said.

“The matter was adjourned for further mention to August 22, 2016 at Murray Bridge Magistrates' Court.

“The Commonwealth Director of Public Prosecutions is prosecuting the matter.”

Mr Strauss was charged with two counts under section 184 of the Corporations Act.

At a meeting in February this year, creditors voted to place Sapphire into liquidation with

Tony Matthews, of Adelaide-based Anthony Matthews and Associates appointed liquidator.

Mr Strauss placed Sapphire, which traded as River City Grain Co., into external administration in March, 2014, with Mr Matthews as administrator, with creditors owed $8.9 million.

NSW Nationals Senator John “Wacka” Williams has previously urged ASIC to investigate the failed grain trading company's dealings following a string of complaints to his office, amid links to the collapse of unsecured creditor, grain trading companies.