City Tatts on the Gold Coast!

Gold Coast property developer Phil Sullivan and a former colleague have been fined $65 million by the Federal Court for corporate law breaches.

The action was launched by investors in the City Pacific Mortgage Fund, which lent millions of dollars to property developers mainly on the Gold Coast.

The court found several former executives, including Mr Sullivan, had breached the Corporations Act.

But Mr Sullivan told the ABC he did not think he had done anything wrong.

“Not at all, not at all. I am very, very proud of what I’ve achieved.” Mr Sullivan said.

Mr Sullivan, one of four original directors, blamed the banks for the fund’s problems.

“It all went wrong when the CBA ┬ájumped in and decided to call their $240 million in in a matter of 92 days, we just couldn’t manage it and …. that was the beginning of the end.” Mr Sullivan said.

But at the judgement, Federal Court Justice Michael Wigney was scathing about Mr Sullivan.

“This is a tale of a rapacious Gold Coast property developer with grandiose plans.” the judgement said.

“He was a man prepared to lie about his involvement in key events so as to extricate himself from blame or responsibility.”

THIS IS CITY TATTS ON THE GOLD COAST!

And the key point is that the events happened in 2009. That’s how long it took to be examined in court.

It’s important to point out that City Pacific did not set out to cheat anyone. They were just a property developer and lender that was over-extended during the GFC.

Any wrongdoing at City Pacific would be very minor compared to the fraud and corruption that has gone on at City Tattersalls Club for 10 years now.

And if any court ever looks at the Bookmakers Superannuation Fund …. well, John Kennedy and the other three amigos could be behind bars.

City Tatts Information Desk

 


Colliers fee will be the next bad news drip

The next bad news drip could well be Colliers fee.

Real estate agents Colliers ran the Expressions of Interest campaign to find Mirvac.

When Mirvac walked away, they ran a second Expressions of Interest campaign and this time awarded it to a developer who has never built anything in Sydney, who happens to be already in partnership with Colliers.

Yes, Colliers sort of awarded the contract to themselves.

You can imagine how that would look in the Supreme Court.

But that’s a story for another day.

The real question is how much Colliers were paid for all this.

Property industry sources say their fee would be at least $500,000 and could top $1 million.

According to the City Tatts accounts, no fees of this size have ever been paid to Colliers.

Which means that they will have to be paid now, or more likely, in early January (to avoid disclosing it in the 2015 financial  statements).

But the real point about the Colliers fee is what it does to the total spent by the Club on the property development to date. In the “Explanatory Memorandum” members were told this was $1,950,000.

Once you add in the Colliers fee to the other fees already paid the total is well over $2,500,000.

Which means the $1,950,000 quoted in the “Explanatory Memorandum” is pure fraud.

City Tatts Information Desk


What will be the next bad news drip?

Since 2012 Tweedledum and Tweedledee have conspired to conceal anything that would expose their property scheme, until the last possible moment.

The plan was to push the project so far that members couldn’t stop it, and then drip-feed out the bad news.

Here is a quick sample of the bad news drip so far:

LEASEHOLD APARTMENTS

At first the apartments would be sold as leasehold only, with the Club retaining the freehold title. Six months later Pat Campion “discovered” that the leasehold sale plan was “not feasible” – but he went ahead anyway with the project even though the main reason for doing it had gone.

MIRVAC’S DEVELOPMENT APPLICATION

Mirvac’s DA was going really well and Sydney Council were “very happy” with it. Yes, until ten months later when Sydney Council told them to withdraw it!

THE AMOUNT SPENT BY CITY TATTS ON THE PROPOSED DEVELOPMENT

First it was “at no cost” to the Club. Then it was $50,000. Then $100,000. Then $290,000. Then $1 million and finally, in the “Explanatory Memorandum”, $1,950,000 !!!

This is all fees, by the way – there is no actual construction to show for any of this.

So what is the next bit of bad news likely to be?

Some suggestions:

INTERIM CLUB?

Is it just possible that the plan to stay open during construction may turn out to be “not feasible”?

FIT-OUT COSTS?

At the very last “information” meeting Pat Campion admitted for the first time that the Club would have to borrow at least $7 million to complete the fit-out of it’s own floors in the new club. What are the odds that this rises to $8 million, then $10 million and then $14 million?

Any other suggestions?

City Tatts Information Desk

 


93% in favour? Impossible!

Patrick Campion claims that 93% of members voted in favour of his insane property development.

Well, at least now you know the postal vote is rigged.

If you have any experience with elections you will know it is almost impossible to get over 90% in favour of ANYTHING.

And if you talked to members around the Club in the last few months half were either against the scheme, or at least very worried about it (which nearly always means they vote against it).

Even allowing for an “information” campaign that was corrupt from the start and ended with the most dishonest “Explanatory Memorandum” ever seen in Sydney, it is unlikely this conned enough members to explain the vote.

And Carl Melvey and the Ski Club (long-time stooges for Tony Guilfoyle) could not have rounded enough votes to get past 90%.

So 93% in favour?

Impossible.

City Tatts Information Desk