Lawyer denies hiding creditor assets
Mr Voitin, a solicitor who in separate proceedings has been accused of frauds worth millions of dollars (he has yet to respond to those allegations), told the Victorian Supreme Court he denied any involvement in hiding Paulding Constructions' assets from the company's creditors.
Associate Justice Jamie Wood heard that Mr Voitin gave Paulding managing director John Paulding a backdated loan agreement that, when signed, had the effect of putting off for four years the repayment of a $2 million loan Paulding Constructions made to another of Mr Paulding's companies, Port Phillip Property Group.
Mr Voitin was answering questions on Tuesday as part of a liquidators' examination, funded by the Australian Securities and Investments Commission into the collapse of Paulding Constructions.
Leslie Glick, QC, counsel for the liquidators, Pitcher Partners, told the court there was evidence of phoenix activity, where the assets of a failing company are used without payment by a new company controlled by the same people, leaving creditors unpaid.
"The people instructing this liquidation want to know whether this solicitor has been involved in, or attempted to be involved in, this phoenix activity," Mr Glick said.
Mr Voitin said he could not recall what happened to a crucial file that disappeared following Paulding Constructions' collapse in late 2009 - although at a previous hearing he said it was probably lost when it fell from his car.
Frequently Asked Questions about this Article…
Paulding Constructions collapsed in late 2009. A court heard that within 18 days after the collapse, lawyer John Voitin and insolvency practitioner Leonard Milner billed the failed home‑building company more than $180,000. Liquidators are examining the collapse and related transactions as part of an ASIC‑funded inquiry.
John Voitin is a solicitor who gave evidence at a liquidators' examination into Paulding Constructions. He has denied being involved in hiding the company's assets from creditors. The article also notes he has been accused in separate proceedings of frauds worth millions of dollars, allegations to which he has not yet responded.
The court heard that Mr Voitin provided Paulding managing director John Paulding with a backdated loan agreement. When signed, that document effectively delayed repayment by four years of a $2 million loan that Paulding Constructions had made to another of Mr Paulding's companies, Port Phillip Property Group.
Phoenix activity is where the assets of a failing company are used by a new company controlled by the same people, often leaving creditors unpaid. Counsel for the liquidators, Leslie Glick QC, told the court there was evidence suggesting phoenix activity in the Paulding Constructions collapse and the liquidators want to know whether the solicitor was involved or attempted to be involved.
The liquidators' examination into the collapse of Paulding Constructions is funded by the Australian Securities and Investments Commission (ASIC). The liquidators involved are Pitcher Partners, and their counsel raised concerns about possible phoenix activity and missing documents.
Mr Voitin told the court he could not recall what happened to a crucial file that vanished after the company's collapse. At a previous hearing he said the file was 'probably lost' when it fell from his car.
The court heard that in just 18 days following the collapse of Paulding Constructions, John Voitin and insolvency practitioner Leonard Milner billed the failed company more than $180,000.
The case highlights risks that can arise when a company collapses: disputed documents (like a backdated loan agreement), missing files, and possible phoenix activity can leave creditors unpaid. ASIC is funding a liquidators' examination to investigate these issues, but the article does not report final outcomes or decisions yet.
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