Top agent accused of misusing $700k
CANFORD KINGPIN ROCKED BY CLAIMS
ONE of the Gold Coast’s biggest property agents has been accused of misspending hundreds of thousands of dollars on luxury goods, flights and spa treatments in a nasty legal spat with his former business partner.
Canford Property Group kingpin Roland Evans and his family allegedly used $700,000 of the company’s money to pay for personal items such as home renovations and flowers.
In a Federal Court judgment where Justice Berna Collier was asked to consider the allegations, a decision was made to appoint a provisional liquidator to look into Canford’s finances.
In her decision to appoint the liquidator, Justice Collier found there was a reasonable chance the company would be wound up under a separate court action to be heard at a later date.
The judgment outlined accusations by Canford cofounder Greg Harris.
He has accused Mr Evans, his wife Tracy and Canford of misusing the money, totalling $718,701.37, between 2014 and 2018.
He also alleges he was removed as a director in late August after raising concerns about the money.
Mr Evans, number 65 on the Gold Coast Power 100 list, has denied the allegations and claims Mr Harris used company money for a skiing holiday in New Zealand.
Mr Harris and Mr Evans launched Canford in 2014 and the agency has been responsible for negotiating sales for high-profile, major development sites such as Jewel, Norwell’s $1 billion “second city” and the proposed Songcheng theme park at Nerang.
Other allegations by Mr Harris include:
Misuse of company funds by the Evans’ at retailers such as Cartier, Harrods and Louis Vuitton and on spa treatments, restaurants, dry cleaning and florists.
Spending company funds on renovations of the Evans’ homes and overseas and domestic flights not related to company business. It included travel insurance, taxis, accommodation and food.
His salary was cut to $7000 a month in April without his knowledge while Mr Evans increased his own to $20,000 a month.
In July he was told by Mr Evans that the company owed the Australian Tax Office $340,000 and that it would struggle to pay because “the money was gone”.
About $82,000 was taken from the company bank account between August 20-28 this year shortly before Mr Harris was removed as director.
●Mr Evans is a director of Canford Estate Agents Pty Ltd, which appears to be in competition with Canford Property Group.
In Federal Court documents, Mr Evans alleges Mr Harris’ company loan account balance had continued to increase in the 2017-18 financial year after reaching about $220,000 in 2016-17.
He said he told Mr Harris about the tax bill in July, and interim payment arrangements were made in November for payment of the tax debt.
Mr Evans alleges on August 27 he noticed a number of unauthorised transactions on one of the company’s bank accounts and a credit card. He claims $1000 had been withdrawn from Mr Harris’ credit card and used for a skiing holiday.
Mr Evans said there had been further unauthorised attempts to access the accounts, so he cancelled the card and told Mr Harris, the documents allege.
He also asked Ms Evans to transfer $56,400 to a different company account so no more money could be withdrawn.
Mr Evans alleges he questioned Mr Harris about the withdrawals and was told he needed the money for a New Zealand holiday.
He organised a general meeting and put forward a resolution to remove Mr Harris as a director on the basis he had failed to perform his duties and because of the unauthorised withdrawals, it is alleged.
Mr Evans told the court that Mr Harris’ claims of questionable transactions were false.
All of his personal expenditure from him and his family had been repaid and Mr Harris was questioning expenses that were normally incurred during the course of business.
In her judgment, Justice Berna Collier said an alternative proposal for Mr Harris to be reinstated as a director would be no less invasive than the appointment of a liquidator.
Similarly, Justice Collier said any purchase of Mr Harris’ shares by Mr Evans would be fraught with difficulty. Justice Collier said Mr Harris had, in effect, been shut out of the company and its management.
“Although it is possible that the company is solvent, nonetheless in the circumstances there is a reasonable likelihood that an order for winding up of the company will be made,” she said.
Justice Collier also said there appeared to have been some “stripping out” of cash from the company’s bank accounts, which were under the sole control of Mr Evans and Ms Evans.
“The preservation of the status quo for the benefit of all shareholders so far as is possible favours the appointment of a provisional liquidator, notwithstanding that it is a drastic step.”
THOUSANDS of share investors’ accounts have been frozen after major online stockbroking firm Halifax Investment Services went into administration.
The firm, run by Gold Coaster Jeff Worboys from offices in Sydney and Southport, had a vast client base in Australia, New Zealand and China.
Company records show Mr Worboys, who lives at Paradise Waters, held about 40 per cent of the company’s shares when it entered administration.
Fellow local and former director, UK-born Benowa resident Andrew Baxter, held about 18 per cent.
Administrators Morgan Kelly, Stewart McCallum and Phil Quinlan of Ferrier Hodgson were appointed to the parent company on Friday and to the related New Zealand operation on Tuesday.
Halifax’s trading platforms were disabled without warning for deposits and withdrawals this week as the administrators began to comb through the company’s affairs.
In a statement on the administrator’s website, Mr Kelly said a creditors’ meeting would be held in Sydney next Wednesday.
“The investors are our primary concern at this time,” he said. “We are conducting an urgent investigation into the business operations and will ensure all stakeholders, creditors, investors and employees are updated of any developments.”
In 2011, then-managing director of Halifax Mr Baxter said the Southport office had 18 staff and handled online investor accounts worth $120 million.
The administrator had not responded by deadline to the Bulletin’s questions about the current number of investors or the amount of funds in Halifax accounts when the company floundered.
Mr Worboys could not be contacted.
Halifax ran into trouble with ASIC in 2013 after the regulator uncovered flaws in its risk management and compliance framework.
It co-operated with the investigation and agreed to appoint an independent consultant to review its business and develop a plan to rectify the deficiencies which included problems with supervision and monitoring of its representatives, handling of complaints and marketing processes.
Halifax provided broking and investment services through business introductions including domestic and international equities, options, futures and forex.
“WE ARE CONDUCTING AN URGENT INVESTIGATION INTO THE BUSINESS OPERATIONS AND WILL ENSURE ALL STAKEHOLDERS, CREDITORS, INVESTORS AND EMPLOYEES ARE UPDATED OF ANY DEVELOPMENTS. ADMINISTRATOR MORGAN KELLY