Counsel for the Inspector General in Bankruptcy (IGB) told the Federal Court that the IGB has uncovered an additional $500,000 allegedly pilfered by Paul Leroy, the ex-trustee in bankruptcy who departed the jurisdiction in December 2023 and is now residing in Belgium.
Barrister Bridget Slocum told Federal Court justice Shaun McElwaine on Friday that since the IGB had commenced the current proceedings in November 2025 its ongoing investigations had uncovered additional misconduct, relief for which would require leave for the filing of an amended originating process.
Little detail was provided during the hearing but the court heard of an estate not previously identified by the IGB as being short $500,000, a figure which must take the total amount the IGB is claiming from Leroy towards $4.5 million.
Leroy, who has not engaged with the proceedings is currently residing in Belgium and was served with the proceedings on March 11.
The court also heard that the IGB was dropping its claim against Mackay Goodwin for repayment of remuneration purportedly paid to it in its capacity as Leroy’s former employer.
The withdrawal of the claim follows the filing by Mackay Goodwin of an affidavit demonstrating that it received no such monies.
The IGB’s separate but related proceeding against registered trustee and Mackay Goodwin head of personal insolvency Gavin King and the Mackay Goodwin firm however continues with orders made last month granting King and Mackay Goodwin – who deny the allegations – access to the transcripts of examinations of four individuals undertaken by the IGB in the course of its investigation.
Two of those interviewed, Ms Orla O’Driscoll Carmody and Ms Nikita Karki previously worked for Leroy at Integrated Accounting Solutions, the company he formed in 2018 after three decades at Hall Chadwick.
The other two – Mr Vinod Girdhani and Mr Marcus Petrovic – either work at Mackay Goodwin or worked there during the relevant period of the IGB’s investigation.
King and Mackay Goodwin have rejected the IGB’s allegations and the matter is due to return to the court for further case management in August.
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Further reading:
Isn’t it about time that the authorities brought him back to Australia to be dealt with according to law