“The precepts of Natural Justice apply that affirm a natural sense of what is right and wrong.” Lord Esher, 1885
Report on Federal Court Hearing, December 3-6
By Gi Linda
 |
Steven Staatz, Vincents |
A four day hearing set for December 3-6 in Qld
Federal Court to decide an application for receivership by Vincents'
liquidator Steven Staatz came to an embarrassing halt for Staatz on the
third day, after conflict of interest by Vincents was exposed.
Staatz
is requesting receivership of the company Wollumbin Horizons, disputed
owner of a contested Mt Burrell property, now designated as part of
Nightcap Village/ Bhula Bhula International Community.
 |
Adrian Brennock, Tyler Tolman at "Nightcap Village" |
Staatz is alleged to be facilitating an illegal
phoenix move enabling Adrian Brennock, company director and fiduciary to
the estate, to retain private ownership of the property,
while continuing to operate a lucrative land-share scam.
Collaborators include neighbouring landowner, Peter van Lieshout,
brother of Queenslands' top billionaire, Super A-Mart founder, John van
Lieshout. The venture is promoted by American health celebrities Don Tolman and son Tyler.
 |
Ian McKinnon, alleged conflict of interest |
Barrister Ian McKinnon joined Vincents Chartered
Accountants in 2002 as a forensic accountant with particular focus on
financial crime. In 2016-17,
Nightcap Village FAQ was sent to potential investors,
listing Vincents and Ian McKinnon as professional advisors to Nightcap Village.
When
previously questioned about conflict of
interest, Staatz and McKinnon denied any prior association and Brennock
dismissed the naming of Vincents and McKinnon as advisors to Nightcap
Village as
"a mistake".
 |
Nightcap Village FAQ lists Vincents as advisors |
Collusion between
Vincents and Brennock was revealed by defrauded
investor Ron Berry
at the Federal Court hearing, with evidence that Vincents' Ian McKinnon was deeply associated with
Brennock.
Contrary to denial by Staatz and McKinnon,
further testimony by Brennock's former partner, Mark Darwin, confirmed
long-term friendship and collaboration between Vincents' McKinnon and
Brennock prior to initiation of liquidation by Vincents and appointment
of Staatz as administrator.
Phoenix Activity
Phoenixing, causing more than $5 billion annual loss to the Australian economy, has become
an easy way for directors to burn an indebted company, revive the
same business under a changed name and defeat creditor claims. See
The Rise of the Phoenix.
Corporate
regulators, ASIC, ARITA and the courts usually turn a blind
eye, as phoenix activity operates in a permissive twilight of
white-collar crime under shadow of law. AccountantsDaily reports one
rare case where illegal operators have come under a spotlight. The
Federal Court has commenced
public examinations on entities connected to one dodgy pre-insolvency
adviser:
Suspected dodgy advisers, directors head to court after ATO swoop.
 |
Vincents' convicted liquidator Stuart Ariff |
Vincents is still smarting from NSW District Court's
conviction of liquidator Stuart Ariff in 2011, on 19 criminal charges
involving phoenix activity.
Ariff was ordered to pay
$4.97 million compensation and jailed for six years, but paroled in
2015. His trial by jury triggered a Senate inquiry into the insolvency
industry in 2010, though little changed as a result. See
ASIC report.
If successful, the intended phoenix
move by Vincents and Brennock would transfer land title to Brennock in his
private capacity and divest over $2.2 million in liabilities and
debts to defrauded investors, including myself and more than twenty
others.
Since Staatz initiated the Federal Court
hearing in January 2017, Judge Derrington has indicated intention to
allow Staatz to sell the land with a lien covering his fees and legal
costs. Instead, evidence of conflict of interest by Vincents forces a
closer look at a
notorious legal loophole that allows corporate crime to flourish with
impunity.
The
Federal Court hearing was halted a day early, on December 5th by Judge Derrington, with orders that Staatz provide to
the Court by December 21 an explanation regarding evidence of conflict
of interest.
Defendants must respond by January 25 and a further hearing is listed for February 25, 2019.
Meanwhile, investors whose class action for proprietary
relief and cross-claim against Staatz in June 2018 was summarily dismissed as
"scandalous" with no
hearing and a suppression order over Court documents are preparing an
appeal to the High Federal Court charging Staatz and Brennock with criminal activity.