Former CEO and director of FAL Healthy Beverages (FAL HB), Efthymios (Tim) Xenos, has been found guilty of making business decisions while bankrupt, and using company funds to pay personal legal costs, in a case that has taken almost a decade to resolve.
FAL Food and Beverages is the owner of coconut water brand Coco Joy as well as Juiced Up, Aqua Ball, Fruitzee, Iso Boost and Hi-Pro Boost brands.
Source: timxenos.co
Xenos was declared bankrupt from 9 August 2011 to 15 September 2015, disqualifying him from managing a corporation, but nevertheless undertook the positions of director and CEO at FAL HB.
At the time of his appointment as chief executive officer and for a considerable time afterwards Xenos was an undischarged bankrupt and was prohibited from managing the company. He held a 2.5 per cent share in FAL HB at the time.
The case was initially brought forward in 2016, alongside a legal dispute over Coco Joy’s $3 million sponsorship deal with the Manly Sea Eagles, which was brokered by Xenos. The team ended up losing the case and faced a $2.8 million deficit, as well as having to pay FAL HB’s legal fees.
Xenos was initially charged by ASIC on 12 October 2021, entering a plea of not guilty to all charges. The matter was heard in the Downing Centre Local Court from 24 November 2023 to 1 December 2023, 29 April 2024 to 3 May 2024 and from 16 September 2024 to 4 October 2024.
He was found guilty on 27 February 2025 of making business decisions while disqualified from managing a corporation, using his position dishonestly with the intention of gaining an advantage for himself, and failing to fully and truly disclose information to his bankruptcy trustee.
The Court Magistrate, Susan Horan, found that:
- between 4 November 2013 and 15 September 2015, Xenos made or participated in decisions that affected the whole or a substantial part of FAL HB in his capacity as CEO and director, despite being disqualified from managing companies due to his bankruptcy. Her Honour found that the evidence established that Xenos signed an offer of employment for the role of CEO on 4 November 2013, was paid a monthly salary of US$14,500 and that his actions were consistent with his position as CEO;
- between 14 March 2014 and 24 April 2015, Xenos used his position dishonestly and gained a direct advantage of approximately $111,342.95 from FAL HB, by using FAL HB funds to pay legal fees and other costs to annul his personal bankruptcy contrary; and
- between 14 February 2014 and 15 August 2015, Xenos failed to fully and truly disclose salary payments he received from FAL HB and all material bank accounts that he was required to disclose at the time to his bankruptcy In completing an income questionnaire, Xenos failed to fully and truly disclose his employment status, his salary from FAL HB and all material bank accounts to his bankruptcy trustee. Her Honour found Xenos had intended to not truly and fully disclose the required information at the time.
Her Honour rejected the defence submission that all decisions Xenos made were ultimately approved by the Saudi Arabian corporate entity which majority-owned FAL HB. Her Honour found that Xenos was the sole signatory of FAL HB bank accounts and that Xenos’ communication with his lawyers about the six payments related to his personal bankruptcy demonstrated an involvement beyond administering the payments.
Xenos was found guilty of offences against sections 206A(1)(a) and 184(2) of the Corporations Act 2001 and section 265(1)(ca) of the Bankruptcy Act 1966.
At the time of the offending the following maximum penalties applied:
- Section 206A(1)(a) – 12 months imprisonment and/or 50 penalty units ($8,500.00).
- Section 184(2) – 5 years imprisonment and/or 2,000 penalty units ($340,000.00).
- Section 265(1)(ca) – 12 months imprisonment and/or 60 penalty units ($10,200.00).
Xenos is currently acting as Director of Food and Beverage at Concept Beverages, based in Wangara, Western Australia.
