The Australian Securities and Investments Commission (ASIC) has filed charges against three former directors of Australian Capital Reserve Limited (ACR) before the Downing Centre Local Court for allegedly making false statement to obtain a financial advantage for ACR.

The three were identified as Samuel Pogson of Wahroonga, NSW, Murray Lapham of Turramurra, NSW and Mr Steven Martin of West Pennant Hills, NSW have been charged under the NSW Crimes Act. They are all facing one count of making a false statement to obtain a financial advantage for ACR.

According to ASIC's charge sheet, the directors concurred in the making of a statement in ACR's Prospectus 6 lodged on 7 April 2004, which contained the financial statements of ACR's parent company, Castle Investment Company Limited and controlled entities (CIC) as at 31 December 2003.

ASIC alleges that the CIC stated profit before income tax as at 31 December 2003 of $7,409,483 took into account sales revenue from transactions that had not properly occurred before 31 December 2003.

Pogson has also been charged under s1308(2) of the Corporations Act with one count of making a false or misleading statement in a form lodged with ASIC.

ASIC said that in ACR's Prospectus 6, Mr Pogson signed a Directors Declaration that the financial statements of CIC gave 'a true and fair view of the financial position as at 31 December 2003 and of the performance for the half- year ended on that date of the Company and Economic Entity', when he knew that the stated profit before income tax took into account sales revenues that were not transactions that had properly occurred before31 December 2003.

The matter will return to the Downing Centre Local Court on 22 June 2010. The Commonwealth Director of Public Prosecutions is prosecuting the matter.