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A former chief executive of FAL Food and Beverages is set to face 18 months’ imprisonment by way of an intensive corrections order (ICO) after funnelling company funds to pay for his personal legal and bankruptcy expenses.
Tim Xenos – also known as Efthymios Xenos – who was the former chief executive and director of FAL Healthy Beverages, which oversaw brands such as Coco Joy, Juiced Up, Aqua Ball, Fruitzee, and previously linked to a controversial sponsorship deal with the Manly Sea Eagles has been sentenced in the Downing Centre Local Court for stealing company funds.
Xenos used over $100,000 worth of company money to fund his legal and bankruptcy expenses. Xenos was found guilty of managing a company while disqualified and while being bankrupt, thus making decisions that adversely affected a majority of FAL Healthy Beverages operations.
The court also found that Xenos acted “dishonestly and gained a financial advantage” of $111,392 – using these company funds to pay for his personal legal fees in an attempt to nullify his bankruptcy. Xenos also failed to disclose both his income and bank accounts to his bankruptcy trustee.
From 9 August to 15 September 2015, Xenos was declared for bankruptcy – a timeline in which he failed to relinquish his role of managing the corporation.
According to Magistrate Susan Horan, who oversaw Xeno’s hearing, the former coconut water CEO demonstrated “a lack of contrition and insight into his offending”, culminating in an 18-month prison sentence being the appropriate decision.
Xenos is now automatically disqualified from managing companies for a total of five years, right through to 27 February 2030.
Before his sentencing, according to Xenos’ LinkedIn, he resided as the director of food and beverage at Concept Beverages.
Xenos had earlier pleaded not guilty to the three offences, with the sentencing taking place from 24 November 2023 to 1 December 2023, from 29 April 2024 to 3 May 2024, and from 16 September 2024 to 4 October 2024.
According to the Australian Securities and Investments Commission (ASIC), which referred the matter to the Office of the Director of Public Prosecutions (Cth), the maximum penalty for each contravention was imprisonment for 12 months, five years, and 12 months, respectively.
As previously reported by Food & Drink Business, a case was brought forward back in 2016 over Coco Joy’s $3 million sponsorship deal with the Sydney-based NRL team the Manly Sea Eagles.
Xenos brokered the deal with the side, which ultimately fell apart when FAL claimed that Xenos “lacked the authority” to sign off on such a deal – meaning FAL claimed the deal didn’t exist.
The Sea Eagles lodged a dispute but subsequently lost the case and copped a $2.8 million deficit, as well as having to pay FAL Healthy Beverages legal fees.
More to come.
Kace O'Neill
Kace O'Neill is a Graduate Journalist for HR Leader. Kace studied Media Communications and Maori studies at the University of Otago, he has a passion for sports and storytelling.
