Glenelg restaurateur diverts $47,000 into personal account prior to liquidation

A Glenelg restaurateur has pleaded guilty to cooking the books, diverting thousands of dollars into a personal account prior to his company falling into liquidation.

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A Glenelg restaurateur has pleaded guilty to cooking the books, diverting thousands of dollars into a personal account prior to his company falling into liquidation.

Gaowei Shi, director of The Crane Japanese restaurant at Glenelg, will face sentencing next month, three years after his company fell into liquidation.

In December 2015 Mr Shi, of Highbury, entered an agreement to sell the assets of his restaurant business to East and West Venture Pty Ltd for $100,000.

However, an ASIC investigation found he diverted approximately $47,000 to a personal account, before the company entered liquidation in March 2016.

Mr Shi has pleaded guilty to one charge of falsifying company books in the Adelaide District Court.

“ASIC found that Mr Shi falsified the company’s bank statements to show that the $47,000 was deposited into the company bank account,” ASIC said.

“The company entered liquidation on 9 March 2016 and the liquidator, Peter Lanthois of DuncanPowell, reported Mr Shi’s conduct to ASIC.

“At the time of liquidation, the company owed creditors approximately $328,000.”

Mr Shi and the Commonwealth Director of Public Prosecutions made sentencing submissions last week, with the matter adjourned to May 16 for sentencing.

The offence carries a maximum penalty of two years imprisonment.

The Crane opened at the beach end of Jetty Rd in late 2014. At the time of opening, Mr Shi had plans to expand the sushi and teppanyaki brand to Adelaide and interstate.