Kleenmaid founder Andrew Eric Young wins new trial as fraud, insolvent trading convictions overturned

The former director of Kleenmaid has had his convictions overturned on appeal after a court ruled the jury should have considered if he was not of sound mind during the trial.

Kleenmaid brothers Andrew (left) and Brad (right) Young at the Mercure Hotel Brisbane following the liquidation of the company. Picture: Newscorp

The founder of white goods empire Kleenmaid will face a new trial after his fraud and insolvent trading convictions were overturned.

Andrew Eric Young, 67, was last year sentenced to nine years in prison after being found guilty of fraud and insolvent trading, following the company‘s collapse in 2009 which left 6000 customers $26 million out-of-pocket.

The Sunshine Coast father spent 10 months behind bars after a jury found he had defrauded the Westpac bank of $13 million and had accumulated debts of more than $750,000 by trading while insolvent.

The Queensland Court of Appeal overturned the convictions on Tuesday on the basis that the jury should have considered if Young was not of sound mind during the trial.

Justice Debra Mullins set aside all of Young’s convictions and ordered a new trial.

She determined that the trial judge had erred in not directing the jury to consider if Young was of sound mind during the trial.

Kleenmaid former directors Andrew Young and Brad Young in 2009. Picture: Newscorp

Under Queensland law, if a person on trial is alleged or appears to not be of sound mind, the jury is to be required to consider the matter to determine if that person should be dealt with under the Mental Health Act.

Young represented himself during the trial and made several applications for a mistrial on the basis he was unfit for trial.

He also requested the jury be made to formally consider if he was not of sound mind.

Psychiatrist Dr Velimir Kovacevic provided reports stating Young was unfit for trial due to cognitive defects.

All applications were denied by the trial judge.

“There was enough in the material placed before the trial judge to raise a real issue about the fitness of the appellant who was represented to be tried,” Justice Mullins said in her decision.

“In this particular trial, the question of whether accommodations and modifications made to the trial process were sufficient to address the appellant’s cognitive deficit were for the jury to decide …”

Young was released on bail in December last year when the court concluded an appeal would be allowed.

He was the third former director to be imprisoned following charges being laid by the Australian Securities and Investments Commission (ASIC) in 2012.

The new trial will be the fourth trial that has commenced over Young’s alleged fraud and insolvent trading.