Westpac Banking Corporation v Sentox Pty Ltd (No 2) [2024] NSWSC 783

Westpac Banking Corporation v Sentox Pty Ltd (No 2) [2024] NSWSC 783

Mrs Musumeci knowingly provided the Bank with false financial statements and tax documents, amounting to participation in a fraud; thus, she is liable in the tort of deceit and under her guarantee. Her claim to have been subject to unjust circumstances and pressured into signing is not supported by the evidence. Mrs El-Ahmad knowingly uploaded false invoice data supporting the fraud, despite her denials, and is liable in deceit for the Bank's advances made in reliance from 2016 onwards. The Bank is entitled to judgment for the debts claimed, interest, indemnity costs against Mrs Musumeci per the guarantee, and proprietary and tracing relief against certain properties and company interests...

Parties
Plaintiff | Cross Defendant: Westpac Banking Corporation; First Defendant: Sentox Pty Ltd; Second Defendant | Cross Claimant: Kathie Musumeci bht Adrian Musumeci; Third Defendant: Andrew Musumeci; Fourth Defendant: Cheeky Farms Pty Ltd; Fifth Defendant: ACE Agriculture Pty Ltd; Sixth Defendant: Musumeci Property Investments Pty Ltd; Seventh Defendant: CAO Holdings Pty Ltd; Eighth Defendant: Sahar El-Ahmad also known as Sahar Abbas; Ninth Defendant: Gerard Quin; Tenth Defendant: Gerard Quin Accounting Services Pty Ltd; Eleventh Defendant: G&K Accountants Pty Ltd; Twelfth Defendant: GDC Tax Pty Ltd; Thirteenth Defendant: Giuseppe Musumeci
Jurisdiction
Australia
Judgment Date
27 June 2024
Procedural Posture
Equity Commercial List / Principal Judgment After Trial on Liability and Remedies
Outcome
Judgment for the plaintiff (Westpac Banking Corporation) against Mrs Musumeci (Second Defendant) on the guarantee and in deceit; judgment against Mrs El-Ahmad (Eighth Defendant) in deceit limited to losses from 2016 onwards; proprietary and tracing relief orders to be finalised; cross-claim by Mrs Musumeci...
Legal Topics
Breach of Contract, Contract Review Under Contracts Review Act 1980 (nsw), Equitable Fraud, Tracing, Proprietary Relief, Tort of Deceit
Contracts Equity Torts Breach of Contract Contract Review Under Contracts Review Act 1980 (nsw) Equitable Fraud Tracing Proprietary Relief +1 more

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Parties

Westpac Banking Corporation

Plaintiff | Cross Defendant

Sentox Pty Ltd

First Defendant

Kathie Musumeci bht Adrian Musumeci

Second Defendant | Cross Claimant

Andrew Musumeci

Third Defendant

Cheeky Farms Pty Ltd

Fourth Defendant

ACE Agriculture Pty Ltd

Fifth Defendant

Musumeci Property Investments Pty Ltd

Sixth Defendant

CAO Holdings Pty Ltd

Seventh Defendant

Sahar El-Ahmad also known as Sahar Abbas

Eighth Defendant

Gerard Quin

Ninth Defendant

Gerard Quin Accounting Services Pty Ltd

Tenth Defendant

G&K Accountants Pty Ltd

Eleventh Defendant

GDC Tax Pty Ltd

Twelfth Defendant

Giuseppe Musumeci

Thirteenth Defendant

Procedural Posture

Equity Commercial List / Principal Judgment After Trial on Liability and Remedies

Legal Issues

  1. 1 Whether Mrs Musumeci and Mrs El-Ahmad participated in a fraud against the Bank
  2. 2 Whether Mrs Musumeci is liable under her guarantee
  3. 3 Whether the guarantee should be set aside under the Contracts Review Act 1980 (NSW)

Ratio Decidendi

Mrs Musumeci knowingly provided the Bank with false financial statements and tax documents, amounting to participation in a fraud; thus, she is liable in the tort of deceit and under her guarantee. Her claim to have been subject to unjust circumstances and pressured into signing is not supported by the evidence. Mrs El-Ahmad knowingly uploaded false invoice data supporting the fraud, despite her denials, and is liable in deceit for the Bank's advances made in reliance from 2016 onwards. The Bank is entitled to judgment for the debts claimed, interest, indemnity costs against Mrs Musumeci per the guarantee, and proprietary and tracing relief against certain properties and company interests...

Court Disposition

Judgment for the plaintiff (Westpac Banking Corporation) against Mrs Musumeci (Second Defendant) on the guarantee and in deceit; judgment against Mrs El-Ahmad (Eighth Defendant) in deceit limited to losses from 2016 onwards; proprietary and tracing relief orders to be finalised; cross-claim by Mrs Musumeci...

Orders

  • By 4.00 pm on 17 July 2024 parties to serve and provide draft orders and submissions to the judge's Associate.
  • Matter stood over to 23 July 2024 or other date for resolution of remaining issues in accordance with judgment.