Nightcap Landshare Communities
Judge Derrington refused to hear evidence of phoenixing and alleged fraud, slapped a suppression order on a class action by investors requesting justice and allowed the sale, granting the liquidator a lien over the property as first priority.
|Ray White with Christies Prestige, Auction 3222 Kyogle Rd, Mt Burrell|
Wollumbin Horizons and Yidaki companies - joined at the hip!
|Derek Zillman, Yidaki Developments|
Promoted globally by celebrity chef Pete Evens, health coach Tyler Tolman and sovereignty activist Max Igan, the land-share scheme is run by Mark McMurtrie, Derek Zillman and Eamon Lowe, in shareholder agreement with landowner Peter van Lieshout, brother of John van Lieshout, Queensland's top billionaire.
The company Wollumbin Horizons (in liquidation) owns title to property purchased in 2015 with investors' funds that were provided for a proposed land-share project.
The director of Wollumbin Horizons is also sole shareholder, controlling the company with a single $1 share. He initiated voluntary administration in July 2017 on a presumption of insolvency, with creditor claims over $2.6 million.
It is alleged by disenfranchised investors that the intended transfer of the land asset would be a phoenix move, divesting liability to creditors of the company Wollumbin Horizons.
Evidence shows that through a network of co-directorships, the project directors have, from 2014 until the present, 2020, continued to profit from sale of shareholdings in shell companies and trusts, by marketing dwelling sites without development approval on property they do not own, where multiple occupancy is currently prohibited by zoning restrictions.
From 2017 until the present, Nightcap Realty has been selling "Native Title" to the property under the changing auspices of "Bhula Bhula Village Community", "Mt Burrell Commercial", "Mt Warning Eco Village", "Nightcap Village", "Nightcap on Minjungbal" and "Nightcap Rural Land-sharing Communities".
After auction of the property, Richard Moate as Nightcap Realty published a newsletter announcing:
"The team are now also extremely proud to announce the successful purchase on Friday of last week of a parcel of land of over 650 acres, further strengthening the future points of access for the Original owners and the community. Needless to say, there was some celebrating to be had both on Country and by members of our community around the world."
Nightcap Realty also posted a video online, showing Yidaki co-director Mark McMurtrie removing the "For Sale" sign, announcing: "We bought it back ourselves!"
|Mark McMurtrie: "We bought it back ourselves"|
The economic impact of phoenix activity
"Like the mythical bird that dies and then resurrects, phoenixing is the deliberate liquidation of a company to avoid paying creditors.. and then the ‘resurrection’ of the business through a different entity. It is illegal."
"The negative impact of insolvency is magnified by phoenixing, which enables a company that owes money to creditors and employees to restart without paying its debts."
"Regulators are aware of the problem. ASIC announced in September it will conduct surveillance of 1,400 target companies and approximately 2,500 individuals... Concurrently, the ATO announced it will investigate 2,000 property developers..." Curbing the Flight of the Phoenix