Parties in the alleged “Richmond Group of Companies” (Richmond Group) tax dodge proceedings were back before a judge this morning, continuing their slugfest over questions of conflict and who should be liquidator of a related entity that may represent a pathway to actual money.
Among the myriad related entities to which Richmond Group liquidators Peter Krejci and John Keenan are appointed is Nararra Developments.
The pair were appointed by the Federal Court late last year upon application for winding up by the Deputy Commissioner of Taxation (DCoT). Shortly afterwards they were appointed receivers over the Nararra Developments Trust.
The appointments however are the subject of termination applications brought by the company’s sole shareholder – non-beneficially as it happens – Ms Thi Linh Trinh.
Ms Trihn is the wife of Sam Peter Cassaniti, the alleged Richmond Group scheme architect who was gaoled for two years in 2004 after being convicted of tax fraud.
Federal Court justice Cameron Moore heard this morning that it while was undisputed that Cassaniti “stood behind” many of the companies in the Richmond Lifts Group, that didn’t alter the fact that Krejci and Keenan were intolerably conflicted given they were the liquidators of companies prosecuting proceedings against Nararra whilst simultaneously being the liquidators of Nararra.
Trihn wants the court to use its discretion to remove Krejci and Keenan and appoint her nominee, Salea Advisory’s Sule Arnautovic as sole liquidator.
All we can say about that is that it’s a long time since Sule held sway over the Jirsch Sutherland national practice and was in a position to deploy the level of resources sufficient to adequately investigate Nararra and what if any role it plays in the alleged tax scheme. Sule’s Salea has a staff of eight.
Oner might also wonder if Sule was to be funded to conduct any such investigations and if so from where would such funding emanate?
Also waiting in the wings are WPL Restructuring’s Scott Pascoe and Glenn Cunningham, who the DCoT is prepared to agree to if Justice Moore decides Krejci and Keenan have bitten of more than they should be allowed to chew. Predictably, his honour reserved judgment.
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Further reading:
Cassaniti-linked lender funded fraudster’s defence
‘Nominal’ director seeks to be heard on winding up
I would have thought on facts stated there was fundamental conflict of interest and duty in Krejci being appointed. Scott Pascoe etal would do good job and would probably get funding. Arnautovic would also do good job but may not get funding. It will be interesting to see what Moore J does.