Issue Date:  -  Tuesday, 14 August 2001

Computer Sellers found in contempt of Supreme Court

Former Perth computer retailer Info4pc Pty Ltd and one of its directors were today found guilty of contempt of WA's Supreme Court.

Info4pc was fined $25,000 and one of its directors, James Hamilton Rae, fined $500, with the court ordering any assets to be sequestered if the fines are not paid.

The findings relate to an electronic transfer on February 1 this year of $110,000 from Info4pc's Belmont bank account to the Banco de Anderlucia in Spain.

In December last year, Info4pc had given an enforceable undertaking to the Supreme Court that the company would not withdraw any money from its bank accounts, other than in the ordinary course of business.

Justice White said, in handing down his decision, that money had been withdrawn and sent overseas, and the court did not accept James Rae's claim that he was no longer a director of Info4pc at the time of the funds transfer.

"The business conducted by the first respondent (Info4pc) was of dubious probity and it cannot be supposed that the second respondent (Rae) was not…..well aware of the nature of that business," Justice White said.

Approximately one month earlier, another director Johnson Williamson, had faxed the Commonwealth Bank's Belmont branch from England, successfully arranging for a separate sum of $190,000 to be transferred to Spain.

Justice White called the bank officers' actions in releasing the $110,000 'remarkable', given that the Belmont branch was aware of the court undertaking and had been sent media reports about the matter.

The court found Mr Rae had committed contempt by "aiding and abetting the withdrawal of the funds, contrary to the undertaking given to the court".

"He must have known that the withdrawal of funds from the banking account would be in breach of the undertaking," said Justice White.

Mr Rae told the court today new information had been passed to Britain's Department of Trade and Industry, which was sending officers to Spain to pursue his brother and fellow Info4pc director Timothy Rae.

Mr Rae told the court he was unemployed and living on social security.

Commissioner for Fair Trading Patrick Walker said he was pleased.

"We alerted consumers about Info4pc from the beginning and this outcome is just the first of more prosecution action under both State and Federal laws," he said.