Fed: Businessman fined for hiding Foster's links to firm

AAP General News (Australia)
04-07-2004
Fed: Businessman fined for hiding Foster's links to firm

SYDNEY, April 7 AAP - A Sydney businessman has been fined $25,000 for price-fixing
- and for deliberately hiding the involvement of convicted conman Peter Foster in a weight-loss
company.

Constantine Xenoudakis was the general manager of Chaste Corporation, a company that
sold a diet pill called TRIMit.

The business had links with Foster, who was convicted in Britain over the 1980s promotion
of Bai Lin slimming tea.

At the time he was convicted for that fraud, Foster was on bail for a separate diet tea scam.

But Xenoudakis told potential sales people of Chaste that the TRIMit slimming product
was a "good business opportunity" - without disclosing to them that Foster was involved
with the company.

That failure raised the ire of the Australian Competition and Consumer Commission (ACCC),
which took Xenoudakis to the Federal Court.

The consumer watchdog also alleged Xenoudakis had breached resale pricing laws by fixing
the price at which his wholesalers could on-sell the TRIMit product.

In a recent judgment, the Federal Court found Xenoudakis had prevented so-called area
managers from discounting or price cutting the product, a move in breach of the Trade
Practices Act.

It also found Xenoudakis was wrong not to have been up-front about Foster's involvement
in the TRIMit pill.

The court banned Xenoudakis from engaging in any price-setting practices for three
years, and ordered him to pay court costs of $8,000.

He must also disclose any future involvement with Foster if entering into other weight-loss
or health industry ventures with him, the court said.

ACCC chair Graeme Samuel said the Federal Court judgment sent a clear message that
individuals would be held to account for contraventions of the Trade Practices Act.

"This is a significant personal penalty (and) clearly indicates the seriousness with
which the court views conduct of this type," Mr Samuel said.

Foster rose to notoriety in the 1980s as the boyfriend of British page three pin-up
girl Samantha Fox, and for his conviction over promoting Bai Lin slimming tea.

In late 2002, it emerged that Foster had helped Cherie Blair, the wife of British Prime
Minister Tony Blair, buy two apartments at knock-down prices in Bristol.

AAP ng/sd/nf/hu/jc

KEYWORD: CHASTE

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