Liquidators
for Frank Zullo’s companies had the High Court freeze one million dollars of
his New Zealand assets nearly four years after Zullo’s Australian company went
into liquidation owing some $A20 million to the Australian tax office.
Frank Zullo’s Queensland Maintenance Ltd
in Australia has a colourful history. It
enjoyed a $A110 million maintenance contract for notorious ABC Learning Centres
owned by Mr Zullo’s brother-in-law. Queensland
Maintenance went into liquidation in 2012 claiming it is owed $629,341 by Mr
Zullo’s New Zealand company: QMS(NZ). No
payment was made. There are allegations
assets in New Zealand companies under Mr Zullo’s control are being spirited
away to keep them from Australian liquidators.
QMS(NZ) and its subsidiaries owned four properties in New Zealand valued
at some three million dollars, including properties in Wiri and Matamata.
The High Court was told Mr Zullo as
director of QMS(NZ) had his company declare a $3.25 million dividend in
December 2013 then transferred company properties to pay the dividend. Liquidators for QMS(NZ) allege fraud. They claim it was a deliberate scheme to
remove all assets from QMS(NZ), leaving nothing for Queensland Maintenance in Australia
to seize.
Justice Hinton imposed a freezing order,
enabling QMS(NZ) liquidators to recover assets should their claims against Mr
Zullo for breaches of his duties as a director of QMS(NZ) succeed at a later
trial. The liquidators asked for a
freezing order over all assets previously owned by Mr Zullo’s New Zealand
companies. Justice Hinton limited the freezing
order to a value of one million dollars, to cover the debt owed Queensland
Maintenance in Australia. Mr Zullo was
invited to nominate which assets are to be frozen. Failing that, the court will decide.
Queensland
Maintenance Services (NZ) v. Zullo Property Group – High Court (29.07.16)
16.117