Bankruptcy - Russell Keddie's latest stunt ... Millions owing to former clients and lawyers ... Transfer of assets to be unravelled ... Roulstone and Barakat next in line to go belly-up? ... Substantial amounts owed to tax man ... Remember Gus Cummins "QC AJC" and the Hunters Hill "transfer"?
Mrs Keddie's Double Bay house. Purchased Russell's half for $1
AS long as Russell Keddie is around he will continue too provide jaw-dropping stories.
Kate McClymont's article in Monday's Sydney Morning Herald (June 18) said that Keddie had filed for bankruptcy on his own petition. Max (Skase Chase) Donnelly is his nominated trustee and there'll be a preliminary report to creditors on Tuesday.
It's anticipated that in large part the creditors list will comprise former clients who have managed to secure settlements totalling nearly $4 million in fraud and overcharging cases against Keddie and his two former partners, Tony Barakat and Scott Roulstone.
He transferred his share in the family's Double Bay home and a property at Bungan Beach for $1 each to his wife in July last year.
Russell's asset divestment scam was underway after he knew that potential creditors would be piling up as a result of the fraud and overcharging cases in the District Court.
In the month that he executed the property transfers there was a settlement against the partnership for $283,679.89 plus costs in favour of former client, Snezena Bazdarov.
It's likely that Barakat and Roulstone will follow down the bankruptcy path, otherwise they'll be landed with Keddie's portion of the overcharging verdicts.
If they do file for bankruptcy they can continue to trade as employed solicitors.
In affidavits filed in the District Court in an application to pay verdicts against them over time, it was revealed that each of Keddie, Roulstone and Barakat owe the ATO in excess of $1 million.
Roulstone seems to have departed Slater & Gordon.
In Russell Keddie's case it is understood that the debt to the ATO is closer to $1.9 million.
The Keddies' principals did not present any evidence disputing the costs claims against them.
Russell and his wife Sarah Key have substantial assets, well beyond the Double Bay and Bungan Beach spreads, including a house a Hyams Beach.
One only hopes for Russell's sake that Sarah doesn't wake up one morning and decide that the marriage has exhausted its happy run.
Sarah Key, back-pain manager to HRH Prince Charles, has a delightful video on her web site that you might like to view.
Solicitor Stephen Firth and Geoffrey Watson SC have knocked up considerable fees in the cases they have been successfully running against the Keddies Three in the District Court.
There would also be Russell Keddie's legal costs in the disciplinary proceedings and the order that he pay the LSC's costs.
The Administrative Appeals Tribunal specifically did not fine Russell because "there was a significant financial penalty to be borne by Mr Keddie", with more than $500,000 in costs to defend the disciplinary complaint.
Those lawyers, or their clients, who have not been paid in full would have an interest in unravelling Russell's property transfers.
Sarah Key might well be called to give evidence about these extraordinary transactions
Few will forget the Cummins' case, where Mrs Mary Cummins the wife of Gus Cummins QC, AJC, was required to cough-up to Max Prentice, the trustee of hubby's bankrupt estate, one half of the proceeds of the sale of the matrimonial home in Hunters Hill, sold the previous year (2002) for $2.2 million.
When Gus "sold" his share of the house to Mary in 1987, Ronnie Sackville found that he was "well aware that he had incurred very substantial liabilities to the commissioner", having neglected to lodge returns from 1955 continuously till 2000.
For the years he subsequently did file returns (1992-1999) he owed $2 million in tax.
Also in 1987, Cummins transferred his 6,000 shares in Counsels' Chambers Ltd to a family trust.
The trust received about $570,000 from the subsequent sale of those shares after Gus' balloon burst.
Sackville said the trustee was to have the benefit of the proceeds of the sale of the chambers.
In all, the trustee recovered about $1.6 million from Cummins' clumsy transfers - minus expenses, of course.
See:
The continuing story of John and Mary
My husband has nothing to do with me or my money
I wonder what HRH The Prince of Wales thinks of Mrs Keddie's role in this sting against her hubby's creditors?
Justinian