I-Prosperity liquidators cop discount, criticise leaks

There’s nothing like offering a discount on fees to cut through the confusion a committee of inspection (COI) might be experiencing as a result of a complex remuneration report.

“The Chairperson noted that if information is leaked to third parties without the Liquidators’ prior consent, the Liquidators would take appropriate action where necessary.” Cor Cordis Partner Jeremy Nipps.

In May this year Cor Cordis partners Barry Wight and Jeremy Nipps had their remuneration claims rejected at a meeting of the i-Prosperity Pty Ltd COI.

Nipps later told iNO that the rejection -which took the form of abstentions from voting on resolutions seeking approval for more than $4 million in fees – was due to some COI members requiring more detail explaining how his and Wight’s remuneration had been calculated.

Minutes of the most recent meeting of the COI show that that deficiency of detail has not only been cured but the amounts re-proposed had undergone a process of liposuction to strip out 12 per cent from the original estimates.

The i-Prosperity COI comprises investors in the property acquisition and development activities spruiked by fugitive director Menghong Gu, as well as Levi Consulting’s David Levi as receiver appointed to i-Prsoperity Underwriting Pty Ltd (In Liquidation).

Also in attendance at the meeting as an observer was lawyer Nicholas Love representing the FEG Recovery and Litigation branch which is funding public examinations planned for 2023.

While Levi – who was the primary critic of the initial remuneration report – abstained from voting on the new resolutions the remainder of the COI approved them and the Cor Cordis pair got their dough.

Apart from getting their fees approved Nipps who chaired the meeting updated the COI on where investigations are at and had a shot at the COI for leaking details discussed at the May meeting.

“The chairperson reminded committee members of the confidentiality deed poll they executed to join the committee and their fiduciary duties from being on the Committee.

“This reminder was made considering certain information arising from the most recent Committee update/meeting subsequently becoming available in the public domain.

“The Chairperson noted that if information is leaked to third parties without the Liquidators’ prior consent, the Liquidators would take appropriate action where necessary.”

Given the liquidators are planning to publicly examine prominent Sydney lawyer and former I-Prosperity chairman John Landerer, as well as executives and staff from the Crown and Star casinos, it is in no way difficult to imagine why Wight and Nipps want to keep their cards close to their chests.