- In short: Convicted paedophile John Wayne Millwood has given evidence in the Federal Court about why he transferred assets into relatives' names and sold shares in his companies.
- What's next: His victim received a multi-million dollar civil payout but is yet to receive any money and is pursuing the matter after Millwood declared himself bankrupt
Convicted paedophile John Wayne Millwood has claimed he significantly divested his finances and assets while in prison because he had terminal cancer, and wanted his affairs put in order.
Millwood – a former Launceston businessman and prominent art collector – was jailed for four years for the abuse of the survivor, known as ZAB, over a six-year period in the 1980s.
ZAB won a $5.3 million compensation payout in the Supreme Court in 2021 – which has now increased to $6 million – but has not received any of the funds.
Millwood declared himself bankrupt.
On Tuesday, a bankruptcy examination hearing was held in the Federal Court in Hobart as the trustee sought further information about Millwood's finances.
That information will be used to inform the trustee about potential claims that may be available for the benefit of creditors, including ZAB.
Millwood was required to give evidence.
The court heard Millwood transferred more than $800,000 to his former partner Sonia Finlay and daughter Sarah on December 7, 2016 – the same day he was sentenced.
He also divested his shares in two of his own companies, from 100 per cent down to 33 per cent.
A day earlier, Millwood's lawyers received notification of ZAB's civil claim, the court was told.
Two adjoining properties in St John Street, Launceston, were sold in 2018, and he "gifted" half of his share in a Low Head property to Ms Finlay's son.
One of the Launceston properties contained Millwood's art collection, valued at $1.75 million.
The court heard evidence of the sale of various art pieces.
'Affairs tidied up' on doctor's advice
Millwood told the court he verbally asked Ms Finlay, from prison, to take care of his matters due to his cancer diagnosis.
"I thought I was going to die in prison because advice I was given and I wanted my affairs in order before that occurred," he said.
"Because I wasn't at all well and I'm still suffering from cancer which was widespread at the prison time and I just wanted my affairs tidied up before that occurred.
"The doctor advised me to do this, I had limited time left."
Millwood also had a will, which was prepared in 2003 or 2004, with a codicil, or supplement, in 2015.
He was questioned about why this did not adequately handle his affairs.
Millwood said he did not want his will to be challenged, and so he divested his assets.
A creditor's petition had been filed with the Federal Court on behalf of ZAB, claiming Millwood had failed to comply with the requirements of a bankruptcy notice from July 2022.
The matter will return to the Federal Court on June 23 for a mention via videolink.
Further examination of witnesses will take place in the court on July 24.
