The director of Ella Rouge Beauty has pleaded guilty to dishonestly misusing his position as a director, and to making a false statement to obtain a financial advantage. Ali Hammoud appeared in a local Sydney court on 25 November following an investigation by the Australian Securities & Investments Commission.

ASIC alleges that Hammoud has misappropriated for his own use more than $2.6m from Ella Rouge Beauty International Pty Ltd, a company that was later liquidated.

The commission also alleges that he made falsified workers compensation insurance forms, undervaluing the company’s estimated and real wages. As a result of this, ASIC estimates ERB benefitted financially by $333,709.

A director who breaches his or her duties faces a five year prison sentence and/or a $220,000 fine, reports ASIC. The falsification of a statement for financial gain also carries a penalty of five years imprisonment, and/or a fine of $22,000. Hammoud’s case has been committed for a hearing at Sydney District Court on 5 December 2014. 

There are 25 Ella Rouge Beauty & Laser Clinics in New South Wales, predominantly in Sydney. The first salon opened its doors in Hurstville’s Westfield centre in 1997.