Did anyone watch 60 minutes last Sunday about a scam in Sydney? A woman lost $500K and is likely to lose her family home.
Bangaru and $20m nowhere to be seen
Paddy Manning, The Australian
12aug05FAILED property developer Kovelan Bangaru is believed to have left the country before a meeting of creditors today, leaving debts estimated at $20 million.
Mr Bangaru, now under investigation by the Australian Investments and Securities Commission, was a high-profile, colourful Sydney businessman who flaunted his wealth with the purchase of a $12 million penthouse apartment and of expensive cars, including a $1 million Mercedes.
However, his business dealings came under question after a dispute with cricketers Michael Slater and brothers Brett and Shane Lee over a failed property investment, which was settled in June with a payment of more than $2 million by Mr Bangaru.
In late July, seven companies associated with Mr Bangaru, including Streetwise Property and Projects, were placed into voluntary administration with estimated liabilities of $50 million and assets of $30 million, leaving a shortfall of $20 million.
Hall Chadwick administrator Geoffrey McDonald, who was appointed by Mr Bangaru, is likely to recommend today that the companies be liquidated.
At the first creditors meeting in Sydney on July 25, Mr Bangaru said – by speakerphone – he would give up his passport at the request of creditors. It is understood ASIC subsequently sought co-operation from the administrator in making a court application to seize Mr Bangaru’s passport.
Mr McDonald said ASIC had not been prepared to apply to the court unless he testified under oath that he knew Mr Bangaru was leaving – and he didn’t.
Mr McDonald also said Hall Chadwick would have been required to pay for the court application – which could have cost an estimated $10,000-$15,000 – and was not in a position to do this.
Yesterday, Mr McDonald confirmed there were rumours Mr Bangaru had left the country.
In an email to one creditor, Mr McDonald said he had collated a report to allow ASIC to begin an investigation but he did not have funding to carry out further investigations.
The email said Mr McDonald believed the missing funds had been used to “finance the lifestyle” of Mr Bangaru.
ASIC deputy director of enforcement Mark Steward said a formal investigation had begun.
“When companies collapse and in the first few days, the first couple of weeks after, we are heavily dependent on co-operation from the company administrator,” Mr Steward said.
Mr McDonald said he would continue working with ASIC.
From 60 minutes:
Paul Barry has hunted down some elusive villains in his time, but this one — King Con — takes the cake. He’s been feted as one of Australia’s richest men, a property developer with a taste for the high life. A couple of penthouses worth $12 million, a Mercedes that cost another million. But the man’s a crook. He’s ripped off scores of investors in a massive real estate racket. Mums and dads, ordinary investors along with some of our best known sports stars, they all fell for the scam. And thanks to King Con, many of them have lost everything. No wonder he’s such a hard man to catch.
One person’s conman is another person’s guru. sometimes, people are outraged at ripoffs; and at other times, people are abused for pulling down tall poppies, being negative naysayers, being jealous of another’s “success”… hehe. It all depends on which side of the guru one stands.
Thanks for the heads up, Techno, One can also read up on this fellow on jenman.com.au
kay henry
hi all
I watched with interest the 60 mins programme.
The only reason these bottom feeders are successfull is because they are swimming where asic cann’t catch them and they are doing it in amongst people who can’t swim.
If you jump into this type of water you are going to get bitten.
The thing that concerns me is who was on the beach and told these people it was ok to invest $500,000.00 on a property that had 7 other investor on the same site with no were near that value.
what did this lady sign or not sign and who was working for her or them from a financial position.
mr Bangaru may or may not be seen as at best a person that has withered away this money and everybody will hold there hands up and say deary deary me here it is again.
The only way to stop people going into this type of water is just like bondi beach explain what these bottom feeders do and educate the prospective purchasers of these type of people.
mr Bangaru is not the first and unfortunately will not be the last.
when you apply for a loan you should and we do get separate legal advice .most of the banks in sydney that I have dealt with ask you to get legal advice before signing but if you pull $375,000.00 out of your account, the only check at most you get is can you tell me what you want to do with it( from the teller) so you are not buying and selling drugs.
we live in a totally free financial market and this has good and bad traits one of the bad traits is pyramid, aeroplane, off shore,planetary systems and if you wish to risk you play.
These bottom feeding dwellers are very good at getting to your money.
The strongest tool in your armour is knowledge.
learn, learn, and then learn more.
I know some people don’t like neil jenman he is a personal friend of mine so I have a bias view but he does aim for all his faults to flush some of these out. and good on him from me.here to help
You must be logged in to reply to this topic. If you don't have an account, you can register here.
