FALLEN real estate boss Anthony Di Nardo looks set to walk away from his collapsed business empire without anyone ever knowing how much is owed.
It's been three months since Di Nardo placed 13 companies in the hands of liquidator Sule Arnautovic, of Salea Advisory, who reports he has been unable to access the companies' Xero accounting files.
As previously reported, it is the second time in eight years that Di Nardo has voluntarily called in Mr Arnautovic to liquidate companies linked to his former real estate franchises.
Similar to the last round of liquidations in 2018, which were related to Di Nardo's two Hunter-based McGrath franchises, creditors are not expected to see a return.
According to Mr Arnautovic's statutory report to the Australian Securities and Investments Commission (ASIC) this week, the companies linked to Di Nardo's former Belle Property franchises appear to have traded while insolvent since mid-to-late last year.
It means the sole director, Di Nardo, may be liable for debts incurred during this period.
Other possible recovery actions listed in the report include "breach of director duty claims and unreasonable director-related transactions".
However, Mr Arnautovic said recovery from Di Nardo was "uncertain", because it was unknown what assets he has.
"Searches conducted by my office have not identified any real property owned by the director in the state of NSW," the report reads.
"I am not aware of any other assets owned by the director."
The Newcastle Herald can reveal that three weeks before Di Nardo voluntarily appointed the liquidator, he transferred his half share of two Newcastle properties to his fiancée, Newcastle-based lawyer Larissa Howard.
This includes a house in Bruce Street, The Junction, purchased in July 2017 for $1.65 million and a townhouse in Stevenson Place, Newcastle East, purchased in September 2021 for $1.15 million
The townhouse was listed for sale in December 2023 for $2 million, but did not sell.
Title searches reveal the properties were transferred to Ms Howard on May 12 this year for "no monetary consideration".
According to documents filed with ASIC, Paul Siderovski's Newcastle-based accounting firm, SiDCOR, referred Di Nardo to the liquidator on the same day.
Mr Arnautovic was officially appointed on June 5.
The report said the liquidator was still investigating possible claims against Di Nardo, but did not have the money to pursue court action.
"My investigation into the affairs of the companies have identified various transactions to the companies' director (relating to commissions, SMSF contributions, loan repayments, related party loans and management fees) in the four years prior to appointment...," the report reads.
"I am currently undertaking a review of these transactions, and related party loan ledgers, with a view to reconciling any potential claims (either as loan claims or unreasonable director-related transactions) that may be pursued against the director and related parties.
"Upon receipt of the Xero access, I will finalise these investigations."
However, due to a lack of funding, Mr Arnautovic has set a 14-day timeline for creditors to supply further money for investigations, or for someone to offer to buy the right to pursue a claim against Di Nardo, or the liquidations will be finalised "as soon as practicable".
Australian law permits liquidators of defunct companies to sell the right to sue.
According to the report, more than $10 million was owed to 10 of the collapsed companies in related-party loans as at June 2024, and 11 of the companies owed $6.6 million in related-party loans.
Mr Arnautovic said he was unable to identify exactly how much was owed by whom because he did not have access to the "underlying loan ledgers".
This meant he could not assess the "amount recoverable from each relevant company, related entity and/or the director".
So far, the liquidator has not identified any significant assets in the 13 liquidated companies.
The limited financial information reviewed by Mr Arnautovic indicates the companies owe at least $1.626 million.
This includes at least $100,347 to Diakrit, $180,032 to Revenue NSW, $81,077 to Printforce Australia, $5791 to Clear Technology, $4922 to High Road Productions, $6919 to Claude Outdoor and $3865 to OOH!Media.
But the true extent of the debt remains a mystery and is likely to stay that way.
The Australian Taxation Office (ATO), the largest creditor to date, has not filed a proof of debt, and many of the businesses have outstanding income tax returns and business activity statements dating back to mid last year.
ZCT Charlestown Pty Ltd has entered into various payment plans with the ATO since August 2023, and defaulted on each agreement.
"The director of the companies has advised my office that the reason for the companies' failure was ultimately due to charges filed against him by the police, which led to the companies' franchise agreement and the suspension of his real estate licence by the NSW Fair Trading Commissioner," the report reads.
"Whilst I do not dispute the director's reasons, it is my opinion that the reasons for the companies failures were also attributable to under capitalisation and inadequate cash flow."
The former real estate high-flyer was arrested in December and is accused of using his "position of power" to sexually and indecently assault eight former female staff members over a 17-year period.
It came after a Newcastle Herald investigation that revealed a series of sexual misconduct allegations against Di Nardo dating back decades.
The report reveals that 12 of Di Nardo's businesses were sold to PBCP Pty Ltd, after Belle Property head office terminated his franchise agreements.
It's understood no money changed hands, but $3.9 million was paid to the Commonwealth Bank to settle Di Nardo company loans.
"I understand the companies did not receive any cash consideration for the purchase as Belle Property and the purchaser assumed various liabilities of the companies to offset funds payable," the report reads.
"Based on the information available, it appears the transaction was valid and commercial."
Mr Arnautovic said further work was needed to assess or bring claims against Di Nardo, but there was no funding.
"I have determined that there is currently no commercial benefit to creditors in commencing such recovery actions against the relevant party, in circumstances where recovery for the relevant parties is uncertain...," he said.
"Should you or any other relevant person wish to acquire the right to sue conferred on the liquidator or provide funding to the liquidator to pursue a claim or recovery action ... please put your offer in writing to my office within 14 days of the report."
