Ella Rouge Beauty founder pleads guilty to misappropriating $2.6 million

Ella Rouge founder Ali Hammoud

Ali Hammoud, the founder of Ella Rouge Beauty Pty Ltd, which operates the NSW chain of ‘Ella Rouge Beauty’ salons, has pleaded guilty to one count of dishonestly misusing his position as a director of ERB International Pty Ltd (ERB) and one count of making a false statement to obtain a financial advantage.

In a statement issued today, the corporate regulator alleged that between 9 August 2007 and 4 March 2008, Mr Hammoud used his position as a director of ERB dishonestly with the intention of gaining a financial advantage for himself, namely by misappropriating $2,609,831.91 from the company for his own use.

ASIC also alleged that between 8 August 2003 and 26 June 2007, Mr Hammoud, with the intent to gain a financial advantage, recklessly made false statements in workers compensation insurance forms by understating the estimated and actual wages of the company. It is estimated that ERB obtained a financial advantage of approximately $338,709.25 as a result of the false statements.

Mr Hammoud was committed to the Sydney District Court where the matter will be mentioned on 5 December 2014.