THE path to losing more than $21 million allegedly started in September 2015 at an exclusive event hosted by US self-styled business guru and motivational speaker Tony Robbins.
Sydney property developer and builder Charles Victor McIntosh, of Dee Why, and his wife Natalie Robson had joined Robbins' exclusive Platinum Partnership Program and were at a networking function.
For an annual membership fee, which starts at US$85,000 for the first year, participants are promised "your most exclusive opportunity" to learn from Robbins, alongside a "group of serious players" from around the world.
According to documents filed in the Sydney Supreme Court, much of which is disputed, McIntosh claims it was here that Robbins introduced him to Newcastle accountant Paul Siderovski, who is also a member of the Platinum Partnership Program and founder of SiDCOR chartered accountants.
A self-made millionaire and long-term Robbins convert, Siderovski brought the now defunct Yogurtland franchise to Australia and made headlines in 2019 following a revolt from franchisees after stores failed to perform as expected.
McIntosh claims that Robbins told him Siderovski was "an investment guru who could introduce otherwise unobtainable opportunities to his clients", was a "trusted fiduciary for his clients", "could perform miracles for companies and their directors" and was a "tax specialist who could legally save his clients hundreds of thousands or millions of dollars in tax each year".
Robbins is alleged to have said that SiDCOR would perform free reviews of McIntosh's tax and business structure and that many past and present members of the Platinum Partnership Program had been through the process with "amazing results and sizeable tax savings, that outshone the cost of Platinum's membership and continued momentum to save them thousands upon thousands of dollars, year after year after year".
But now McIntosh and three of his companies, Australis Investment Corporation, Mac Wealth Holdings (Australia) and Mac Wealth Holdings (Singapore), are suing Siderovski and SiDCOR in an attempt to claw back a lost $21.5 million nest egg, interest and undisclosed damages, alleging commercially misleading conduct.
McIntosh's Australis Investment Corporation ultimately burnt $2 million on shares in accounting software start-up Panalitix Global and Mac Wealth (Australia) lost $9.5 million on shares in the now liquidated Integrated Green Energy Solutions (IGE), which had ambitious plans to build plants around the world to turn plastics into fuel.
A further $10 million was lost after Mac Wealth (Singapore) loaned it to IGE's fully-owned Dutch subsidiary IGEA. The company is also owed at least $2.4 million in interest on the outstanding loan.
In a summons filed in the Supreme Court late last year, McIntosh claims that SiDCOR, and its sole director Siderovski, breached their fiduciary duties to him and his three companies.
The chief executive of Sydney's Gannet Developments blames SiDCOR, and Siderovski, for the loss of his fortune, alleging their conduct in making "investment representations" was misleading or deceptive, and he never would have invested in the shares or loaned the money if it wasn't for them.
According to McIntosh, the opposing sides entered into an investment agreement in mid-2016 that involved the provision of "investment advice, business and wealth management advice and services, mentoring services and advisory services and other services".
But Siderovski says McIntosh is simply not telling the truth and there was no investment agreement, or financial services and investment advice provided.
As a chartered accountant, who does not hold an Australian Financial Services licence, Siderovski is not legally allowed to provide financial advice on investments.
Instead he has pointed the finger at McIntosh as being responsible for the loss of his own fortune.
According to Siderovski, "McIntosh is a concurrent wrongdoer" and it was him who made the alleged misrepresentations about the investments to his three companies, which they relied on.
He says that McIntosh, a successful construction industry veteran, "reposed trust only in his own business acumen and opinions" and strongly refutes the accusations he or SiDCOR is responsible, saying he only gave advice about staff issues, accounting and tax.
But it's a different story from McIntosh, who says he trusted Siderovski and was dependant on him for investment, financial, tax and risk advice.
Despite being an accomplished builder and property developer who can interpret basic accounting concepts and financials, McIntosh says he had no formal education past the age of 15 and does not understand complex tax issues and is unable to prepare company financials.
He relies on "his accountants to provide sound advice".
IGE, an Australian listed company that had ambitious plans to build plastics-to-fuel-plants in Canberra, the Central Coast, Taree and around the world, went into liquidation in June 2021 owing more than $70 million.
The proposed ACT plant was promoted as going to convert 200 tonnes of plastic a day into diesel and petrol.
Formerly known as Foy Group, IGE twice failed to meet ACT government deadlines to cough up $2.9 million for a block of land in Hume, before finally settling on October 19, 2017, and then selling the land.
In April 2018, its plan to build the Canberra plant was killed off after an expert health panel found there were too many risks with the unproven technology.
McIntosh's lawyer Serina Roppolo, of Kardos Scanlan, argues IGE did not demonstrate its capacity to turn plastics into fuel and a "reasonably competent and prudent financial adviser" would have advised of the risks of lending the company $10 million.
Among a host of allegations is that Siderovski never disclosed he was a director and shareholder of Panalitix when he made the alleged representations to McIntosh to purchase $2 million worth of shares in the company, that Siderovski "caused" Mac Wealth Australia to buy shares he owned in IGE, that McIntosh was told he would "make a lot of money" and the rate of return on the shares would be "at least 500 per cent".
"A reasonably competent and prudent financial adviser would have advised the plaintiffs that he had a personal interest in Panalitix," Ms Roppolo wrote.
Siderovski has denied the claims, adding he told McIntosh he was a director of Panalitix and invested his own money in the company, and that any discussions about the firm were made in his personal capacity, not related to a business agreement.
McIntosh says his financial woes took place between between April 2016 and October 2019, after Siderovski allegedly recommended in March 2016 he conduct a "vision project" to drive business revenue.
In order to perform the vision project, estimated to cost between $25,000 and $35,000, it's alleged Siderovski said he would "immerse himself in McIntosh's life", being a mentor, coach and strategic soundboard.
McIntosh says Siderovski was meant to "protect" him, with the number one rule of "never losing money" and that McIntosh was told he could save $700,000 in tax and "the savings would probably amount to millions".
He claims Siderovski said his 2015 company tax returns were "prepared negligently, but that Siderovski could fix them", and re-doing the returns would "generate a return of 10 to 20 times the cost of that work".
It's further claimed that Siderovski offered to provide "professional certainty, clarity and a support structure to McIntosh" and that he described IGE's chief executive Paul Dickson as "very skilful and highly successful at managing corporations, raising capital, growing businesses and operating listed entities".
Siderovski denies almost all of the claims, saying SiDCOR entered into a business services agreement with McIntosh and his related-entities to provide financial and tax returns, forecasting, tax planning and monthly discussions,
In response to the summons, Anthony Foate, of Newcastle's Catalyst Legal, says Siderovski did not owe or breach any duty of care and no investment representations were made.
"There was no duty of care to inform McIntosh that shares may go up in value or may go down in value," Mr Foate wrote.
"There was no duty of care to inform McIntosh, a successful man of business, that investment shares involved risk. There was no duty of care to inform McIntosh, a successful man of business, that sometimes loans are not repaid."
Lawyers for Mr McIntosh cite a host of emails, text messages and meetings between the two men as evidence of their claims.
"It was a term of the investment agreement that Siderovski owed the plaintiffs a duty to take reasonable care to advise on the risks of any particular investment opportunity and to inform the plaintiffs where he could obtain a financial benefit from any particular investment opportunity."
The matter is due before court next month.
Both men did not respond to requests for comment.
Know more? Donna.page@newcastleherald.com.au
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