White (Trustee), in the matter of Vlahos (Bankrupt) v Ljubicic [2017] FCA 717

FEDERAL COURT OF AUSTRALIA

White (Trustee), in the matter of Vlahos (Bankrupt) v Ljubicic [2017] FCA 717 File number: VID 371 of 2017

Judge: BEACH J

Date of judgment: 23 June 2017

Catchwords: BANKRUPTCY – application for summary judgment – void transactions under s 120 of the Bankruptcy Act 1966 (Cth) – betting syndicate – Ponzi scheme – no consideration for payments – application granted

Legislation: Bankruptcy Act 1966 (Cth) s 120 Federal Court of Australia Act 1976 (Cth) s 31A(1) Federal Court Rules 2011 (Cth) r 26.01

Date of hearing: 23 June 2017

Registry: Victoria

Division: General Division

National Practice Area: Commercial and Corporations

Sub-area: General and Personal Insolvency

Category: Catchwords

Number of paragraphs: 27

Counsel for the Applicants: Mr MJ Galvin QC

Solicitor for the Applicants: Thomson Geer

Counsel for the Respondent: The Respondent did not appear

ORDERS VID 371 of 2017 IN THE MATTER OF WILLIAM STEPHEN VLAHOS, A BANKRUPT BETWEEN: CLYDE PETER WHITE AND PHILIP NEWMAN AS TRUSTEES OF THE PROPERTY OF WILLIAM STEPHEN VLAHOS, A BANKRUPT Applicants

AND: MARIO LJUBICIC Respondent

JUDGE: BEACH J DATE OF ORDER: 23 June 2017

THE COURT DECLARES THAT:

1. (a) The two separate transfers of $10,000.00 by William Stephen Vlahos (Vlahos) to the bank account of the Respondent on 29 December 2008 are void as against the Applicants pursuant to section 120 of the Bankruptcy Act 1966 (Cth) (the Act). (b) The transfer of $10,000.00 by Vlahos to the bank account of the Respondent on 16 February 2009 is void as against the Applicants pursuant to section 120 of the Act. (c) The transfer of $111,067.69 by Vlahos to the Respondent by cheque no 000040 presented on 2 July 2009 is void as against the Applicants pursuant to section 120 of the Act. (d) The transfer of $120,000.00 by Vlahos to the Respondent by cheque no 000089 presented on 5 October 2009 is void as against the Applicants pursuant to section 120 of the Act. (e) The transfer of $106,087.37 by Vlahos to the Respondent by cheque no 000109 presented on 24 December 2009 is void as against the Applicants pursuant to section 120 of the Act. (f) The transfer of $35,538.54 by Vlahos to the Respondent by cheque no 000247 presented on 6 July 2010 is void as against the Applicants pursuant to section 120 of the Act. (g) The transfer of $97,376.00 by Vlahos to the Respondent by cheque no 000353 presented on 4 October 2010 is void as against the Applicants pursuant to section 120 of the Act. (h) The transfer of $20,000.00 by Vlahos to the bank account of the Respondent on 29 December 2010 is void as against the Applicants pursuant to section 120 of the Act. (i) The transfer of $20,000.00 by Vlahos to the bank account of the Respondent on 31 December 2010 is void as against the Applicants pursuant to section 120 of the Act. (j) The transfer of $100,084.10 by Vlahos to the Respondent by cheque no 000397 presented on 5 January 2011 is void as against the Applicants pursuant to section 120 of the Act. (k) The transfer of $704.00 by Vlahos to the bank account of the Respondent on 10 February 2011 is void as against the Applicants pursuant to section 120 of the Act. (l) The transfer of $112,086.94 by Vlahos to the Respondent by cheque no 000262 presented on 4 April 2011 is void as against the Applicants pursuant to section 120 of the Act. (m) The transfer of $7,823.00 by Vlahos to the Respondent by cheque no 000263 presented on 4 April 2011 is void as against the Applicants pursuant to section 120 of the Act. (n) The transfer of $82,467.23 by Vlahos to the Respondent by cheque no 000541 presented on 30 June 2011 is void as against the Applicants pursuant to section 120 of the Act. (o) The transfer of $108,593.86 by Vlahos to the Respondent by cheque no 000621 presented on 7 October 2011 is void as against the Applicants pursuant to section 120 of the Act. (p) The transfer of $94,948.43 by Vlahos to the Respondent by cheque no 000722 presented on 12 January 2012 is void as against the Applicants pursuant to section 120 of the Act. (q) The transfer of $92,674.11 by Vlahos to the Respondent by cheque no 000673 presented on 5 April 2012 is void against as the Applicants pursuant to section 120 of the Act. (r) The transfer of the sum of $164,421.70 by Noble Edict Pty Ltd from funds held on trust for Vlahos to the bank account of the Respondent on 9 January 2013 is void as against the Applicants pursuant to section 120 of the Act. (s) The transfer of the sum of $100,000.00 by Noble Edict Pty Ltd from funds held on trust for Vlahos to the bank account of the Respondent on 15 July 2013 is void as against the Applicants pursuant to section 120 of the Act. (t) The transfer of the sum of $159,360.52 by Noble Edict Pty Ltd from funds held on trust for Vlahos to the bank account of the Respondent on 12 August 2013 is void as against the Applicants pursuant to section 120 of the Act. AND THE COURT ORDERS THAT: 2. The Respondent pay the Applicants the sum of $1,563,233.49. 3. The Respondent pay the Applicants' costs of these proceedings, to be taxed in default of agreement. Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.