Former WA mining boss’ ‘lieutenant’ jailed over role in $2 million heist

Justice Joseph McGrath conceded Flegg did not fully appreciate the legal implications of her new role, given she had no formal training and had spent the better part of two decades as an office administrator, and was acting amid a time of “chaos and urgency” in Landau’s business.

But McGrath refused to accept Flegg was a mere “novice”, labelling her a “lieutenant” to Landau, who ultimately sought to benefit from the unlawful conduct to the detriment of creditors and prospective investors.

And he said the sophistication of the offending and the repetitive breaches of trust showed a lack of integrity.

“You stole from a company you owed a duty to… and by releasing this false information, you helped to maintain this deception over an extended period,” McGrath said.

“Decietful conduct like this erodes confidence in markets.”

The court was told the mother-of-two was of prior good character and was deeply remorseful for her offending, having been diagnosed with depression and anxiety following the probe.

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Flegg was sentenced to four years and two months jail for the offending, but will be eligible for parole after serving 25 months.

Earlier this month, Flegg cancelled her bail and elected to be jailed after conceding a term of imprisonment was likely the only remedy.

Flegg is the latest former employee to be dealt jail time following the watchdog’s pursuit of the company.

In December, Flegg’s co-offender Landau was handed a 44-month jail term after pleading guilty to masterminding the money shuffling scheme and doctoring Citation’s bank statement.

The former Claremont lawyer and high-ranking executive also provided false information to ASIC, claiming Continental Coal had raised $2.6 million from investors, when it had netted less than $60,000.

In sentencing Landau, McGrath said his conduct involved “extended breaches of trust” and went against the fundamental responsibilities of a company director.

Fellow director Ashley Paul D’Sylva was spared jail in May after pleading guilty to recklessly failing to exercise his powers for a proper purpose by sourcing $1 million of bridging finance from Celtic Capital through his company Empire Equity to recapitalise Continental Coal.

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