The corporate regulator has launched a criminal investigation into a failed Queensland luxury caravan company amid fresh allegations the former director illegally paid dividends to shareholders.
Zone RV collapsed in December owing $42 million to creditors before the Sunshine Coast business was wound up liquidation-as-police-confirm-fraud-investigation/106227746″ data-component=”Link” data-uri=”coremedia://article/106227746″>in January.
More than 100 customers, many of them retirees, collectively paid millions of dollars in progress payments for caravans that were never built.
These customers will not receive a cent from the liquidation process, the liquidator Cor Cordis confirmed.
A new owner purchased Zone RV’s assets in April to continue the brand but the majority of creditors were left empty-handed.
A Cor Cordis report alleged Zone RV’s founder and sole director David Biggar knowingly traded the company long after it was insolvent, accumulating huge financial losses.
Mr Biggar’s company relied on taking new customer deposits to repay debts before it collapsed, the liquidator said. (YouTube)
After sustained public pressure ASIC has now opened a formal probe into the company’s affairs.
ASIC is investigating “suspected contraventions” of multiple sections of the Corporations Act, including criminal offences of a director acting recklessly or dishonestly,…