Fighting for Subbies Rights
I know Greg, his story is typical of so many subcontractors, he feels let down by the system like we all do. CMS Ashtay should have been called Astray for the way the director burnt subbies money.
A number of subbies have provided information that the director or CMS Ashtay is still working in the industry in a capacity not permitted under the QBCC Act.
It is a failing of the QBCC as that information was provided in 2017 on 3 occasions;
Following is the answer I received from the QBCC.
"Where allegations of illegal phoenix activity arise they are referred to the appropriate agency such as ASIC or the ATO.
Apart from that the information you have submitted has been sent through for assessment as part of normal process.
I can't comment on operational mattters."
Nothing has changed in the 22 months since this information was sent to the QBCC so either they did not do their job, ASIC did not do their job or the ATO went after easier targets such as subbies who have been screwed by these builders.
GREG Michel was approaching 50, had a young family, a bad back, and a desire to get off the tools when, in mid-2017, he became a victim of the construction sector curse.
His fledgling business, Greg’s Interior Lining, was among unsecured creditors collectively left owed more than $2 million when Charles Martin Schulz, on July 14, 2017, filed a voluntary debtor’s petition for the bankruptcy of his Ashtay Group, trading as CMS Building and Design.
Work on an apartment block was the first major project he had contracted for since he launched the business, using money from the home he had sold to finance the set up and float his sole trader business.
A report to creditors on June 14 last year by liquidator Michael Caspaney of Menzies Advisory has made it clear Schulz should not have been in business when he engaged Mr Michels.
“From my investigations, it is my opinion that the company was insolvent from at least February 1, 2016,” Mr Caspaney stated.
“Therefore, it is apparent that the director may have allowed the company to trade whilst insolvent.”
Debts dating back to February 1, 2016, remain unpaid, with those owed to unsecured creditors never likely to be, according to the liquidator’s report.
“I had done $130,000 worth of work in two months when he went bankrupt on us,” Mr Michel said.
He had heard murmurs about late payment when he started and fronted Schulz about them, only to be assured that everything was good, and he would be paid on time.
That never happened.
Mr Michel said the deal was that work was invoiced on the 30th day of the month and was to be paid on the 30th of the next.
It meant he, and his lines of credit had financed seven weeks of labour and materials.
With a four-year-old and a 10-year-old at home and his vehicle leased through the business, Mr Michel’s situation was immediately desperate.