Insolvency firm's fraud claims hit court as industry faces overhaul
The court case comes as the Gillard government released draft laws on Wednesday to overhaul the insolvency profession, including giving greater powers to creditors to remove liquidators and curb excessive fees.
The parliamentary secretary to the Treasurer, Bernie Ripoll, said in a statement: "The Gillard government is committed to restoring the community's confidence in the effective regulation, high professional standards, transparency and accountability of the insolvency profession following recent high-profile cases of misconduct by corporate insolvency practitioners."
Mr Crisp, a veteran practitioner whose list of insolvency appointments runs to 11 pages, has worked on jobs including Mick Gatto's Elite Dogman & Riggers, which failed in February owing the Tax Office $3 million, and the trucking company Viking Group, which collapsed last year amid allegations of fraud. He now works for a rival firm, Jirsch Sutherland.
He denies the allegations, which relate to the liquidation of Foodlife Inventory Holdings between 2002 and 2008. In a statement, his legal team said the allegations of fraud against him were not properly pleaded, he had provided all information about Foodlife to RSM, and the firm had released him from any liability in a deed signed when he left it in August.
BusinessDay is able to reveal details of the case after the Chief Justice of the Victorian Supreme Court, Marilyn Warren, threw out Mr Crisp's attempt to obtain a suppression order.
Justice Warren also denied a bid to force Fairfax Media to reveal its source, saying the application "contains an element of fishing", and awarded costs against Mr Crisp.
She said there was "a public interest" in reporting on Mr Crisp because as an official liquidator he acted as an officer of the court when he accepted appointments from the courts.
Mr Crisp is liquidator of Viking Group, which collapsed amid allegations that invoices had been falsified and luxury cars had gone missing.
The Herald Sun reported in August that it had "seen" emails to RSM in which "claims were made that Hells Angel bikies illegally took trucks and other equipment on behalf of RSM Bird Cameron". RSM has denied using Hells Angels to repossess goods and also continues as liquidator of the Viking Group companies.
Mr Crisp was also appointed liquidator of Mick Gatto's Elite Dogman & Riggers in February. That job remains with RSM.
RSM filed a writ on November 8 and a statement of claim eight days later. On the day of the writ, its 80 partners placed a caveat on Mr Crisp's property in Lysterfield, Victoria.
The statement of claim alleges that as liquidator of Foodlife, Mr Crisp billed $2.1 million but failed to pass all the fees through to RSM, leaving a "shortfall amount" of $514,313.
RSM alleges that between September 8, 2004, and June 23, 2006, Mr Crisp made 70 payments from an account to his personal bank account to meet debts that he personally owed creditors.
RSM is seeking damages, an account of profits made by Mr Crisp in breach of his fiduciary duty, an order that any profits or benefits are held on trust for RSM, an order that Mr Crisp holds his interest in the property at Windsor Drive, Lysterfield, on trust for his former employer and costs.
Frequently Asked Questions about this Article…
RSM Bird Cameron alleges Glenn Anthony Crisp committed fraud and misappropriated more than $500,000 — much of it used to renovate a suburban property — during the liquidation of Foodlife Inventory Holdings (2002–2008). The firm says Crisp billed $2.1 million but failed to pass all fees through to RSM, leaving a shortfall of $514,313, and that he made 70 payments from a trust/account to his personal bank account between 8 September 2004 and 23 June 2006 to meet personal debts.
Crisp denies the allegations. His legal team says the fraud claims were not properly pleaded, that he provided all Foodlife information to RSM, and that RSM released him from liability in a deed when he left the firm in August. The article also notes Crisp now works for rival firm Jirsch Sutherland.
RSM filed a writ on 8 November and a statement of claim eight days later. On the day of the writ, RSM’s 80 partners placed a caveat on Crisp’s property in Lysterfield, Victoria. RSM is seeking damages, an account of profits, orders that profits and any benefits be held on trust for RSM, a trust declaration over Crisp’s interest in a Windsor Drive, Lysterfield property, and costs.
Chief Justice Marilyn Warren threw out Crisp’s attempt to obtain a suppression order and denied an application to force Fairfax Media to reveal its source, describing that application as containing “an element of fishing.” She awarded costs against Crisp and said there was a public interest in reporting on Crisp because, as an official liquidator, he acted as an officer of the court.
The article mentions Foodlife Inventory Holdings (the liquidation central to RSM’s claim), Viking Group (which collapsed amid allegations of falsified invoices and missing luxury cars — Crisp is liquidator and RSM continues as liquidator for Viking companies), and Elite Dogman & Riggers (Mick Gatto’s business that failed owing the Tax Office $3 million). These matters are relevant because they involve high‑profile insolvency appointments and allegations of misconduct that can affect creditor recoveries and market confidence.
The Herald Sun reported emails claiming Hells Angels bikies illegally repossessed trucks and equipment on behalf of RSM Bird Cameron. RSM has denied using Hells Angels to repossess goods. The article reports the media coverage but also notes the court refused Crisp’s suppression bid.
The Gillard government released draft laws to overhaul the insolvency profession, including proposals to give creditors greater powers to remove liquidators and to curb excessive fees. Parliamentary Secretary to the Treasurer Bernie Ripoll said the reforms aim to restore confidence through stronger regulation, higher professional standards, transparency and accountability following recent high‑profile misconduct cases.
RSM is seeking damages and an account of any profits Crisp made in breach of fiduciary duty, orders that profits or benefits be held on trust for RSM, a declaration that Crisp’s interest in the Windsor Drive, Lysterfield property is held on trust for his former employer, and an order for costs.
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