Norman Carey and Graeme Rundle could face up to five years behind bars after a judge handed the pair two criminal charges each.
The former Westpoint Group directors were charged late last week in a Perth Magistrates Court on two criminal charges brought by ASIC.
As part of its case, ASIC alleges Carey and Rundle contravened sections 184(2)(a) and 601FD of the Corporations Act.
The corporate regulator alleges that in January 2006, the directors breached their duties as officers of Westpoint Management Limited and Westpoint Corporation Pty Ltd.
"These breaches occurred when they executed deeds extending the time for Westpoint Corporation Pty Ltd to exercise an option to purchase the Warnbro Fair Shopping Centre and adjoining land (WFSC)," an ASIC statement said.
"The breaches also involved transfer of the option to purchase WFSC to Bowesco Pty Ltd; a Carey family trustee company."
At the time of the alleged offences, Carey and Rundle were officers of Westpoint Management Limited, the responsible entity for the managed investment scheme, Warnbro Fair Syndicate, which owned the WFSC. They were also officers of Westpoint Corporation Pty Ltd.
As well as facing these charges, on 24 June, Rundle was found guilty on two separate charges of making false or misleading statements to a financial institution in support of a $71 million credit facility application to fund a Westpoint building of the Scots Church project in York Street, Sydney.
Rundle will be sentenced on 12 August 2011.
The Commonwealth Director of Public Prosecutions is prosecuting the matter.
The matter returns to court on 15 July 2011.
At the time of Westpoint's collapse in January 2006, investors in Westpoint-related financial products had an outstanding total capital invested of $388 million.
