G8 Education: Former chairwoman Jennifer Joan Hutson in court facing multiple charges

A childcare centre company boss allegedly claimed she was in “deep trouble” after spending almost $1 million of the business’s money, as she answers questions in court over the misappropriation of $15 million of the company’s funds.

FORMER childcare centre company boss Jennifer Hutson allegedly claimed she was in “deep trouble” after spending almost $1 million of G8’s money to buy shares in another corporation she controlled.

During a committal hearing in the Brisbane Magistrates Court today, it was alleged the former chair of ASX-listed G8 Education Limited misappropriated $15 million of the company’s funds in 2015.

Crown Prosecutor Glen Rice QC alleged $8.5 million of the cash was later spent on shares in the company Affinity Education, instead of being invested in childcare centre opportunities.

The education company previously launched a failed takeover bid of Affinity, which was blocked by the Takeovers Panel in 2015 because of undisclosed links to another corporate entity – West Bridge Holdings.

Hutson is facing a raft of charges including attempting to pervert the course of justice, 14 counts of giving false and misleading information during the course of an examination, failing to exercise duties in good faith and the best interests of the corporation and 10 counts of giving false and misleading information.

Jennifer Joan Hutson arrives at Brisbane Magistrates Court for a committal hearing after being charged over takeover bids relating to the company G8 Education. Picture: AAP Image - Richard Waugh

The court heard Hutson allegedly spent $928,000 of ANZ shares with G8’s money in August 2015 on behalf of another company, which she was a director and 50 per cent shareholder of, the court heard

In April 2016, Hutson allegedly met with another man and said she “had a problem” in relation to the 30,000 shares that had been bought.

“She asked him to help out with the development of a cover story for the purchase of the shares,” Mr Rice said.

He said Ms Hutson claimed she was in “deep trouble” because she had no explanation for using the funds.

The shares were later sold at a $90,000 loss, the court heard.

Hutson is also alleged to have made false and misleading statements to the stock exchange about takeover bids and produced false loan agreement documents.

Mr Rice today alleged the statements were made when Hutson knew she was being investigated by ASIC for her alleged unlawful activities involving the operation of G8.

The court also heard Hutson allegedly made the false statements during examinations relating to the company’s operations during May and June 2016.

Hutson resigned as chair of G8 in 2015 and has previously said through her lawyer that she would be defending the charges.

The committal hearing continues.

Originally published as G8 Education: Former chairwoman Jennifer Joan Hutson in court facing multiple charges