Creditors are set to lose millions of dollars following the collapse of a group that allegedly guaranteed tenants for rental properties.
Four related entities of the Charterhill Group owed $19.1 million dollars when they entered insolvency in January-February 2014, according to documents recently filed with ASIC.
In total, only $89,000 of that has been recovered or less than 0.5 cents in the dollar.
The Adelaide-based group offered a range of services including property management, real estate marketing, mortgage broking, contract negotiation and SMSF advice.
Charterhill director George Nowak filed a petition for bankruptcy in July 2014.
Fairfax Media reported last September that Mr Nowak allegedly claimed that he could help property investors benefit through the National Rental Affordability Scheme.
“Investors in Charterhill, some of whom have lost their life savings, say Nowak told them tenants for their investment properties, which they had leveraged through their DIY super funds, were guaranteed under the National Rental Affordability Scheme [NRAS],” Fairfax reported.
“Nick Piantadosi, 55, a sales representative, claims he invested $250,000 after Nowak came to his Adelaide home and told him he could guarantee 10 years of NRAS accommodation for a flat in Melbourne.”
The Department of Social Security, which runs NRAS to help house the disadvantaged, told Fairfax that it had had no involvement with Nowak or Charterhill.
Documents recently filed with ASIC give a more detailed picture of the debt positions of the four companies in the Charterhill group.
One of the companies, Nova Real Estate, owed $7.6 million, according to a report filed by the liquidator, Andrew Heard of Heard Phillips.
Mr Heard’s presentation of accounts and statements, which covers the period between 25 February 2014 and 24 February 2015, shows he recouped only $49,500 during that time.
Mr Heard is also acting as liquidator for one of the other related entities, broking firm Lending Solutions International. It has $10.2 million in debts, of which $31 has been recovered.
Michael Basedow of Pitcher Partners is acting as receiver and manager of the final two entities: EJ Property Developments and Financial Wellness.
Those two companies owe a combined $1.3 million but have only collected $39,000 in payments, according to Mr Basedow’s presentation of accounts and statements.
[Related: Court orders Nowak to surrender passport]