Some exads are like centrifuges. Run them long enough and all manner of ejecta is disgorged. The liquidation of MK Floors (NSW) Pty Ltd is a case in point.
As some iNO readers will recall, the MK Floors administration distinguished itself early on when the two appointees were subjected to public examinations funded by the FEG Recovery Unit.
“In 2019, following Mr Iannuzzi ceasing to be a Liquidator of the Company, a creditor of the Company raised concerns about certain transactions in 2017 that are recorded in the trust account records of Constantinidis Accountants and involve either Mr Iannuzzi or a company called Dandmian Pty Ltd of which Mr Iannuzzi was the sole director and shareholder.” Steve Naidenov, liquidator, MK Group.
During those examinations lead appointee David Iannuzzi struggled to accurately describe the physical appearance of MK sole director and Hawke Labor government minister John Brown, 90 of Rozelle, a struggle those watching the proceedings could well appreciate given Mr Brown only hours earlier told the court the pair had never met.
That was in 2018 and it was only a year later that Iannuzzi consented to orders sought in the Federal Court by the Commissioner of Taxation which saw the then Veritas Advisory principal stripped of his liquidator’s registration and banned from reapplying for 10 years.
That left co-appointee Steve Naidenov as sole liquidator of MK Floors and as his most recent report to creditors reveals, the centrifugal force of his sustained investigations has seen some curious revelations flung forth.
Most eye opening is Naidenov’s conclusion that the referrer who brought the appointment to Iannuzzi in 2016 – a gentleman by the name of Achilles Constantinidis – was potentially a shadow or de-facto director of MK Floors and acted as its chief financial officer prior to referring them the gig.
“At the time of the appointment, Mr Constantinidis advised that he was acting solely as an external adviser to the Company,” Naidenov said.
“My investigations subsequently revealed that Mr Constantinidis was appointed as the MK Group’s chief financial officer.
“They also determined that Mr Constantinidis may have been a shadow or de facto director of the Company.
“At the present time, I have issued a demand against Mr Constantinidis for insolvent trading on this basis.”
iNO does not suggest any wrongdoing by the recipient of the demand, the issuance of which Naidenov found less than straightforward.
“While my investigations have identified eight interests in real property in the name of “Achilles Constantinidis” in NSW, I have not been able to confirm whether some or all of these interests are that of the person concerned with the Company,” Naidenov advised creditors in his report.
“However, his name is a common Greek name and I am aware that the person concerned with the Company shares his name with several family members,” he said.
This coincidence of Constantinidis however doesn’t stop there. Naidenov also identified claims as liquidator of MK Floors against a firm called Constantinidis Accountants.
The sole director of Constantinidis Accountants is one Achilles Constantinidis, 53 of Drummoyne, who is sometimes known as “little Al”.
In response to our inquiries Naidenov confirmed that the director of Constantinidis Accountants is not the same Achilles “Big Al” Constantinidis who referred the MK Floors appointment to himself and Iannuzzi and is now subject to a demand in respect of alleged insolvent trading.
His claims, for which he subsequently won judgement, likely formed part of what influenced Little Al to resolve to last week appoint Jones Partners’ Bruce Gleeson as liquidator of Constantinidis Accountants via a creditors voluntary liquidation.
“At the time when Constantinidis Accounting went into liquidation, companies in the MK Floors Group (In Liquidation), did though have proceedings on foot against this company, which were commenced by me as Liquidator. I will be seeking to prove their claims in the liquidation of Constantinidis Accounting,” he said.
Naidenov stressed that the claims, for around $66,000 were not against “Little Al”, who iNO has learned is the recent recipient of Director Penalty Notice (DPN).
Well well, the centrifuge has certainly proved its worth. And like a good story teller, it’s saved its best for last.
As part of the updated report Naidenov distributed to creditors in March, he attached a Replacement DIRRI.
Setting aside questions like why now, the DIRRI contains a fascinating entry under the category of “Other Relationships”.
“In 2019, following Mr Iannuzzi ceasing to be a Liquidator of the Company, a creditor of the Company raised concerns about certain transactions in 2017 that are recorded in the trust account records of Constantinidis Accountants and involve either Mr Iannuzzi or a company called Dandmian Pty Ltd of which Mr Iannuzzi was the sole director and shareholder,” Naidenov said.
“Until these concerns were raised, I was entirely unaware of the relevant transactions. Mr Iannuzzi responded privately to the creditor about the matters and he did not then and has not since provided me with a copy of his response or provided me with any details of the transactions or of any subsequent communications between him and the creditor.”
An ASIC search of Dandmian shows that David Ianuzzi is no longer sole director. He’s been joined by Marguerite Iannuzzi 42 of the same inner western Sydney address as David Iannuzzi and registered builder Sam Al-Mir, who heads Xela Projects.
Xela Projects website in turn lists its CFO simply as David.
“David brings with him over 20 years corporate experience. Previously operating a national advisory firm providing guidance to all types of business.”