When you discover your referrer lodged a bogus proof of debt in the liquidation he’s referred to you, what’s to be done?
Delete said referrer from your contacts, or take more drastic action?
For the Sydney liquidator who admitted the baseless claim, the nuclear option – abandoning CVL work entirely – was easier than punting the referrer, though that happened too, eventually.
Now it’s not hard to imagine that the odd brummagem might occasionally pass undetected through the adjudication process and there’s no suggestion this particular liquidator knew at the time that the proof was fallacious.
Fortunately however the Corporations Act facilitates not just a mechanism for claiming debts but one to pursue investigations and this week it was enforced in the form of public examination of individuals linked to the affairs of Symich Building Pty Ltd, which was placed into voluntary liquidation in February 2022.
The liquidator appointed back then was Gavin Moss, following a meeting with Symich Building director Daren Perich and pre-insolvency advisor Andrew Stark of Wisdom Business Consultants, both of whom attended to be examined yesterday by the man who in late 2024 replaced Moss, Helm Advisory’s Stephen Hathway.
The PEs are being funded by Symich Building creditor Team Dreegan Pty Ltd, the party which sought to oust Moss at meetings on February 14, 2023, June 7, 2023 and June 28, 2023.
Each time the petitioning creditor was unsuccessful, but it was only at the June 28 meeting that the resolution was actually put to a vote, which brings us to the subject of dubious proofs.
While being examined yesterday Stark was asked about a proof of debt he lodged in the liquidation for $70,000, presumably for introducing Perich to Moss, for advising Perich and for organising the CVL.
The reason Stark was being quizzed about the proof was because documents subsequently obtained by Hathway included invoices for the same amount made out not to Symich Building but to Perich personally.
Under questioning Stark conceded the invoice had been paid by Perich and the proof of debt must have been submitted in error.
Its admittance however was fortuitous for Moss t the time because it bumped up the value of votes and the number of creditors opposed to Team Dreegan’s resolution seeking his removal such that the vote was deadlocked. Moss declined to use his casting vote and the resolution failed.
But Team Dreegan refused to fold.
In the aftermath it commenced proceedings in the Federal Court seeking orders for Moss’s removal.
After some negotiation Moss agreed to make way for Hathway. In exchange Team Dreegan waived rights to any claims against Moss.
In response to iNO’s inquiries yesterday Moss said he and Chifley had for the past two years focussed solely on Small Business Restructuring appointments, to the exclusion of all the other forms of external administration.
And he’d not had a referral from Stark in 18 months.
Further reading:
It raises the ugly question of what an external administrator will do after 1 July 2026 when the AML/CTF amending legislation so far as it may affect an accountant appointed at least in a voluntary capacity over a company would be providing a designated service to the Company and be required to report to AUSTRAC – assuming a report has not already been provided to ASIC.