Lyndon Kingston, the former CEO of Bananacoast Community Credit Union, has been sentenced to 18 months in prison.
Kingston is believed to be the first former bank CEO or credit union CEO in Australia sent to jail.
The 57-year-old was found guilty at trial in the Brisbane District Court last month of two counts of dishonestly using his position with the intention of gaining an advantage, and two counts of providing misleading information to an auditor.
The Courier-Mail reports the court was told Kingston had committed the offences over an 18 month period in 2016 and 2017 while working as CEO at BCU.
Judge Carl Heaton said Kingston gained a total of approximately $140,000 after making “informal agreements” with a consultant and contractor through his dealings at BCU.
The first arrangement involved Kingston authorising the payment of four invoices totalling over $80,000 from BCU to a consultant, Judge Heaton said in his sentencing remarks.
But he said Kingston hadn’t disclosed to BCU that he had made prior arrangements with the consultant to pay nearly 50 per cent of the payments back to him personally.
The second arrangements involved Kingston entering a contract with a company who BCU paid $385,000.
“In fact $120,000 was added to this contract to the actual fee for service,” Judge Heaton said.
He said Kingston had a further agreement with the company to pay him $10,000 each month via a smaller company.
Kingston’s employment with BCU was terminated in late 2017.
Kingston received a head sentence of 18 months imprisonment, with release after six months jail under a $1000 good behaviour recognisance.
P&N Bank merged with BCU in 2019.