In the matter of Courtenay House Capital Trading Group Pty Limited (in liquidation) [2018] NSWSC 1918

In the matter of Courtenay House Capital Trading Group Pty Limited (in liquidation) [2018] NSWSC 1918

The freezing orders should be continued and varied to exclude exceptions for living expenses and legal expenses payable from specified bank accounts of the Sipina and Papoulias parties, because the Plaintiffs have established a strong prima facie case that the funds are trust funds and the defendants are not bona fide purchasers without notice; there is a substantial risk of dissipation of assets that would deprive aggrieved persons of a remedy, and alternative sources for living and legal expenses exist for the Sipina parties.

Parties
First Plaintiff: Courtenay House Capital Trading Group Pty Limited (in liquidation); Second Plaintiff: Courtenay House Pty Ltd (in liquidation); First Defendant: Tony Iervasi aka Anthony Ierasi, Antonio Iervasi and Tony Ieruasi; Second Defendant: David Sipina; Third Defendant: Athan Papoulias; Fourth Defendant: Proactive Property Services Pty Ltd; Fifth Defendant: Sipina Enterprises Pty Ltd; Sixth Defendant: TheNowGroup.com.au Pty Ltd; Interested Party: Arbejo Pty Limited
Jurisdiction
Australia
Judgment Date
12 December 2018
Procedural Posture
Civil Proceeding / Interlocutory Application for Continuance and Variation of Freezing Orders
Outcome
Freezing orders continued and varied as proposed by Plaintiffs.
Legal Topics
Freezing Orders, Ponzi Schemes, Constructive Notice, Trust Funds, Bona Fide Purchaser, Dissipation of Assets, Payment of Legal and Living Expenses From Frozen Assets
Corporations Equity Freezing Orders Ponzi Schemes Constructive Notice Trust Funds Bona Fide Purchaser Dissipation of Assets +1 more

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Parties

Courtenay House Capital Trading Group Pty Limited (in liquidation)

First Plaintiff

Courtenay House Pty Ltd (in liquidation)

Second Plaintiff

Tony Iervasi aka Anthony Ierasi, Antonio Iervasi and Tony Ieruasi

First Defendant

David Sipina

Second Defendant

Athan Papoulias

Third Defendant

Proactive Property Services Pty Ltd

Fourth Defendant

Sipina Enterprises Pty Ltd

Fifth Defendant

TheNowGroup.com.au Pty Ltd

Sixth Defendant

Arbejo Pty Limited

Interested Party

Procedural Posture

Civil Proceeding / Interlocutory Application for Continuance and Variation of Freezing Orders

Legal Issues

  1. 1 Whether freezing orders under s 1323 of the Corporations Act 2001 (Cth) should be continued and varied
  2. 2 Whether there is a strong prima facie case that funds in the defendants' bank accounts are trust funds
  3. 3 Whether the Sipina and Papoulias parties are bona fide purchasers for value without notice

Ratio Decidendi

The freezing orders should be continued and varied to exclude exceptions for living expenses and legal expenses payable from specified bank accounts of the Sipina and Papoulias parties, because the Plaintiffs have established a strong prima facie case that the funds are trust funds and the defendants are not bona fide purchasers without notice; there is a substantial risk of dissipation of assets that would deprive aggrieved persons of a remedy, and alternative sources for living and legal expenses exist for the Sipina parties.

Court Disposition

Freezing orders continued and varied as proposed by Plaintiffs.

Orders

  • Freezing orders as previously made are continued.
  • Freezing orders are varied to exclude exceptions for living expenses and legal expenses payable from specified bank accounts of the Sipina and Papoulias parties.