Plutus Payroll Australia Pty Ltd (in liquidation) v Saikali [2024] NSWSC 1093

Plutus Payroll Australia Pty Ltd (in liquidation) v Saikali [2024] NSWSC 1093

The court found that the Teplitsky Parties, through Michael Teplitsky (controller and director), knowingly assisted and participated in the fraudulent dissipation and laundering of Plutus Payroll funds received as a result of a blackmail/extortion scheme. Although there was no direct admission of knowledge of the source or means of the funds, the clear circumstantial evidence established at least wilful blindness or reckless disregard. The $7m and $4.6m transactions were sham arrangements, effected for the purpose of assisting Mr Rostankovski and his associate to 'clean' and return misappropriated company funds. Both transactions were found to be uncommercial and insolvent transactions of...

Jurisdiction
Australia
Judgment Date
28 August 2024
Procedural Posture
Commercial List (equity) Proceeding / Final Judgment After Trial, With Parties to Bring Final Orders
Outcome
Judgment for the Plaintiffs against the Second to Fourth Defendants (Teplitsky Parties), with orders for equitable compensation and relief under s 588FF of the Corporations Act and for costs; orders for quantum, pre-judgment interest and costs to be finalized on further submissions/orders.
Legal Topics
["directors' Duties" 'fiduciary Duties' 'knowing Assistance and Receipt (barnes V Addy)' 'voidable Transactions' 'uncommercial Transactions' 'admissibility of Evidence in Civil Proceedings' 'blackmail and Extortion' 'proceeds of Crime' 'business Records and Hearsay']
['corporations' 'equity' 'insolvency'] ["directors' Duties" 'fiduciary Duties' 'knowing Assistance and Receipt (barnes V Addy)' 'voidable Transactions' 'uncommercial Transactions' 'admissibility of Evidence in Civil Proceedings' 'blackmail and Extortion' 'proceeds of Crime' 'business Records and Hearsay']

Case Brief

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Procedural Posture

Commercial List (equity) Proceeding / Final Judgment After Trial, With Parties to Bring Final Orders

Legal Issues

  1. 1 ['Whether the Second to Fourth Defendants knowingly assisted or received property in respect of breaches of fiduciary or statutory duty relating to funds misapplied from Plutus Payroll (the Barnes v Addy claims)' 'Whether the transactions were uncommercial and insolvent transactions of Plutus Payroll under the Corporations Act 2001 (Cth)' 'Whether evidence (AFP recordings etc) was admissible under telecommunications and surveillance devices legislation and the Evidence Act 1995 (NSW)' 'Whether relief should be denied or reduced in light of subsequent payment to Commonwealth or double recovery concerns']

Ratio Decidendi

The court found that the Teplitsky Parties, through Michael Teplitsky (controller and director), knowingly assisted and participated in the fraudulent dissipation and laundering of Plutus Payroll funds received as a result of a blackmail/extortion scheme. Although there was no direct admission of knowledge of the source or means of the funds, the clear circumstantial evidence established at least wilful blindness or reckless disregard. The $7m and $4.6m transactions were sham arrangements, effected for the purpose of assisting Mr Rostankovski and his associate to 'clean' and return misappropriated company funds. Both transactions were found to be uncommercial and insolvent transactions of...

Court Disposition

Judgment for the Plaintiffs against the Second to Fourth Defendants (Teplitsky Parties), with orders for equitable compensation and relief under s 588FF of the Corporations Act and for costs; orders for quantum, pre-judgment interest and costs to be finalized on further submissions/orders.

Orders

  • ['Order for equitable compensation against Michael Teplitsky for $11.152 million (plus interest), representing the loss from the $4.6m and $7m transactions.' 'Order for equitable compensation against Tepcorp Investments and Tepcorp Holdings for $6.852 million (plus interest), relating to the $7m transaction.'...