A telco reseller that once traded under Red Telecom has been hit with $450,000 in fines for failing to pay more than $63,000 it owed.

The reseller, now known as Limni Enterprises, was ordered by the Telecommunications Industry Ombudsman to pay more than $63,000 to seven customers, including six businesses and one individual.

After it failed to, the AMCA initiated Federal Court proceedings.

In the interim, Red Telecom sold its customer base to Hubify, changed its name to Limni, and went into liquidation.

Red Telecom offered products and services from Fuji Xerox and Panasonic, resold NBN services, and providing IT services through Bitlogic.

Of top of the Federal Court fine of $450,000 penalty to Limni, the court issued sole director Nicholas Kontaxis with a $115,125 fine.

Justice Perry said the company “demonstrated a lack of respect” for the Ombudsman, citing “a culture within the company that was antithetical to compliance”.

Kontaxis likened the fine to a minor infraction, saying he assumed the fine could be overturned, “just like when you get a parking ticket, just like you get anything else in life, there is an avenue for appeal,” he said.

“This judgment serves as a reminder to members of the TIO Scheme that there are serious consequences for failing to comply,” ACMA chair Nerida O’Loughlin said.

“It also makes it clear that directors who are responsible for ancillary contraventions may receive tough penalties, even where the company goes into liquidation.

“The Court has sent a clear message that failing to comply with a TIO decision will result in penalties that provide a clear deterrent.”