Fighting for Subbies Rights
The latest sorry tale to come out of the Sydney Construction Industry is that this developer featured by A Current Affair, is not alone in his quest to rip subbies off by liquidating his companies to avoid paying them.
He races a $680,000 supercar, he lives in a 15 million dollar mansion and he drives only the best cars but rather than pay his subbies, he liquidates his companies, not once, not twice but 3 times. This thief belongs in gaol. 
Its not just one snot nosed sleaze who is doing this but he fits the mould of a greedy scumbag and is obviously a person who treats subbies and the law with utter contempt.
The big picture here is that laws need to be changed because there is a whole industry built around pre insolvency advisors, lawyers, liquidators and criminal builders and developers who are getting rich by not paying subbies.
The reporter said the total amount owed "is a staggering $911,200 dollars" and while that is a large sum of money, try 6 million (Queensland One Homes) and 30 million (Walton Constructions and Cullen Group) and throw in the other 30 large building industry liquidations last year who ripped off creditors for well over 300 million.
The liquidator says serious offences may have been committed such as Section 588G of the Corporations Act "failure to prevent insolvent trading". He said the director may have been acting as a shadow director and doesn't believe he has any defence available to him. In other words, there is no defence so get stuck into him with a vengeance.
State Small Business Ombudsman
As for the State Small Business Ombudsmans ridiculous solution to the problem by setting up a "Directors Register". Pray tell, what will a directors register do to stop these unscrupulous crooks liquidating?
Sweet bugger all, they will simply put the new entity in the wife’s name, mums, dads, sons, daughters or friends, even someone who has died and operate the business as a shadow director. They do it now, every day of the week.
She looked like she wanted to be thanked for a great idea that would achieve nothing. You have to understand the depth of the problem to find a solution.
Life bans don't work, a directors register will not work so fill up the gaols until they get the idea and then let's hope there are a few hard nosed subbies in there waiting for them to bend over to pick up the soap in the shower.
We have an idea
We have a suggestion, prosecute him for fraud and each and every one of them where it is clear they have committed fraud and going by the liquidators report, that is the case here.
In almost every building industry liquidation we saw last year, there was premeditated fraud involving pre insolvency advisors to defeat creditors and illegal phoenix operations to continue on their merry way.
We would also like to see them prosecute pre insolvency advisors, crooked lawyers and liquidators who don't investigate the fraud and do friendly liquidations.
Prosecute and convict them and gaol them so that the next one coming along might think twice before he steals subbies money.
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