Investors who were left out of pocket by Melissa Caddick have appointed a representative and barrister to contest the alleged fraudster's parents in a court battle over a Sydney property.
Since Ms Caddick disappeared in November 2020 amid an investigation into a multi-million-dollar Ponzi scheme, receivers have been untangling a web of finances and assets she left behind.
The 49-year-old's Dover Heights home, in Sydney's east, was last year sold for $9.8 million, however the fate of another property in Edgecliff has presented far more complicated legal questions.
Barbara and Ted Grimely, Ms Caddick's parents, claim in court documents they contributed nearly $1.1 million to pay down the mortgage on the $2.25 million property, where they lived since 2017.
A dispute has arisen as to whether proceeds from the Dover Heights sale should be used to pay off the Edgecliff mortgage, and also whether the Edgecliff property is among the assets to be used to pay back investors.
Barrister Vanessa Whittaker SC, representing the receivers, on Wednesday told the Federal Court the overwhelming majority of 55 out-of-pocket investors have now voted to appoint a representative, known as "Investor A", to act for all of them.
They also voted to distribute any funds from Edgecliff on a "pari-passu" — or equal footing — basis, the court heard.
Ms Whittaker said there were now "two camps"; out of pocket investors "versus" the Grimleys.
This avoids possible disagreements between the investors about rights to a particular pool of funds, due to the timing of their investment.
Barrister Nicholas Owens SC now acts for Investor A and requested his client be joined as an interested person in the proceedings.
"We say the utility of us being here is unquestionable," he said.
"We should be in the same position as the Grimleys, we are participating in the same dispute on opposite sides of the ledger."
Justice Brigitte Markovic gave the parties until late April to exchange written submissions in support of their respective positions about the Edgecliff property.
Ms Caddick is alleged to have stolen some $23 million from investors before she vanished.
The findings of an inquest into her disappearance and suspected death are due to be handed down on April 27.
