WA Company Fraud by Wife - What Can I Do?

[Wes]

Hello,

Back in 2014,, a Perth accounting/real estate company went into liquidation and closed the doors and as far as the relevant bodies were concerned, that was that.

Around that time my ex-wife, who was working for this company and was the director's PA and bookkeeper, was starting her own accounting company funded mainly by me. I saw this as an opportunity to better my families financial position and I had had enough of doing FIFO work.

Little did I know her plans didn't involve me. in fact, her plans were to get rid of me and live happily ever after with her boss.

I didn't realise at the time what exactly was going on, but I did feel that something wasn't quite right as she was meeting up with him in secret, bringing home boxes and boxes of paper work and files, computer hard drives and destroying them. Even getting our kids to help her shred stacks of paperwork.She also hid computer hard drives in her mother's garden shed.

I'm no company law expert of any form, but to me looking back she helped her boss hide the paper trail to funds he stole from his company, and put those funds into her new company.

So I guess what I want to know is, should I seek some financial payback as I supported her while she was studying for her accounting diploma and also funded the start-up costs of her new company. Also I know that karma will catch up with these two but how would I go about these two being brought to justice for there despicable behaviour?

 

[Rob Legat - SBPL]

If you're asking whether you should approach your ex-wife for money in return for keeping quiet about what you may or may not have witnessed, the answer is emphatically: no.

If you're seeking recompense for investment in a new company, your approach to doing that would depend on the basis on which you provided the investment. If you don't have some form of shareholding, or loan agreement, you may be relegated to seeking a property settlement through the family courts.

If you want to report what you saw, your first step should be to talk to the liquidators.

 

[Wes]

Thanks for the help Rob. I will take that onboard.

I know that the original liquidators of her boss's company were kicked out and a new one appointed. Perth being a small city, is it possible the new liquidators helped him get away with it? Because I think they may have been mates.

Also at the time we were struggling to make ends meet hence me doing fifo work to try better our financial position.So would a large influx of capital into her new company ring alarm bells somewhere?
And evidence to what went on?

 

[Rob Legat - SBPL]

If the liquidators are court appointed, it's unlikely that there's something awry going on. However, many liquidators will lost interest quickly if it's apparent there's not enough in the company to pay their fees. If the company appointed their own liquidators, and they're accountants, it's completely likely that they appointed 'friendly' ones. However, if you give them the information and they don't appear to be acting reasonably with it - take the matter to ASIC. No liquidator is going to fudge things if they have ASIC breathing down their neck.

A large influx of capital may be a red flag for them. The liquidator should trace the source of funds. This type of thing may fall under 'pheonixing', where one company shuts down only to have a similar one with the same people spring up immediately. ASIC recently expressed interest in clamping down on them.

 

[Wes]

Yes, I've read about phoenix companies.I did send the liquidators an email,but i just made a general enquiry and they never replied.

Also I remember my ex at the time saying she was doing work with or for the liquidators. Is this normal for the directors PA to be working with them?

 

[Rob Legat - SBPL]

Such a situation would certainly give rise to a potential conflict of interest. Liquidators must act in the best interests of the creditors of the company, and in accordance with the law. Failing to do so is a ground for their being removed by an interested party (eg creditor) or ASIC.

 

[Wes]

Thanks Rob, appreciate your time in answering my questions.