The Australian Securities and Investments Commission has laid fraud charges against Perth property developer Kevin Pollock and two of his business associates, four years after National Australia Bank appointed receivers to 14 of Mr Pollock's companies.
The Pollock Group had debts of about $70 million when the receivers were appointed, and its collapse has triggered legal action by several parties.
ASIC said ten fraud charges have been paid against three Pollock Group directors - Kevin Pollock, his son Jamie Pollock and Joanne De Hollander.
The charges relate to arrangements regarding $3.7 million of hire purchase financing for heavy earthmoving equipment obtained from the NAB and BankWest.
Mr Pollock conducted his business affairs, involving land sub-division, earthworks, equipment hire, and garden and landscaping supplies, through multiple part-owned companies and joint ventures.
The receiver, Taylor Woodings partner Ian Francis, said he had pretty much completed the process of selling Pollock Group assets.
He said the main secured creditor, the NAB, had received a substantial return but would suffer a shortfall while the Australian Taxation Office, an unsecured creditor owed about $20 million, had not received a significant return.
The legal imbroglio surrounding Pollock Group has included the Tax Office, which put Mr Pollock and his wife, Francis Iva Pollock, into bankruptcy, and the state government's Office of State Revenue, which instituted proceedings against Ms de Hollander over an unpaid tax bill.
Former PricewaterhouseCoopers' partner Geoff Totterdell was appointed the trustee in bankruptcy.
An ASIC statement is pasted below:
CHARGES LAID AGAINST POLLOCK GROUP DIRECTORS
Three directors of Perth-based property developers, Pollock Group, appeared in the Perth Magistrates Court today on fraud charges laid by the Australian Securities and Investments Commission (ASIC).
The charges follow an ASIC investigation into a number of companies associated with local property developer Mr Kevin Pollock and his son Jamie Pollock both of Crawley, Perth. The Pollocks face a total of nine fraud charges between them.
A business associate of the Pollocks, Ms Joanne De Hollander of Wattle Grove, Perth also appeared today charged with one count of fraud.
The ten charges relate to arrangements regarding $3.7 million dollars of hire purchase financing for heavy earthmoving equipment obtained from the National Australia Bank and Bank of Western Australia.
All three have been placed on bail to reappear at the Perth Magistrates Court on 13 July 2007. The Commonwealth Director of Public Prosecutions is prosecuting the matter.
