Tony, Craig and the Bendigo Bank

[GTRMagic]

An interesting article from Thursday's Financial Review....

Aurora developers sued by investor
By Nicole Lindsay, 07/04/2005,

Queensland property developer Craig Gore and his business partner John Atkinson are being sued by a Melbourne investor over the proposed "adults-only" Aurora project on Queensland's Hope Island.
A statement of claim has been lodged in the Victorian Supreme Court by lawyers Maurice Blackburn Cashman, on behalf of investor John Sterling.

Mr Sterling, a retiree, wants his $1 million back, plus compensation for having his money tied up for the past five years.

He alleges a raft of breaches of the Trade Practices, Fair Trading, and Australian Securities and Investments Commission Acts and Corporations Law.

He is suing Aurora Developments, Atkinson Gore Group, John Atkinson, Craig Gore and JE Atkinson & Associates.

Mr Gore, a former bankrupt, is the son of property developer Mike Gore, who fled Australia in 1992 owing $45 million, before his death in 1994.

Craig Gore, who debuted in BRW 's Young Rich List last year with a personal fortune of $140 million, sold the Aurora development to Australand last year for $148 million.

A spokesman for Mr Gore and Mr Atkinson said last night, "Mr Sterling was an investor in the project but all other allegations are rejected.

"The initiation of legal action is reckless and premature. There is a genuine commercial dispute between the parties, which we expect will be resolved."

Mr Sterling alleges he invested $1 million from his family trust into the Aurora development in 2000, on the advice of Mr Atkinson, according to the document.

Mr Atkinson and his accounting firm, JE Atkinson & Associates, had been his accountant and investment adviser since June 1996, according to the statement of claim.

At a meeting in June 2000, Mr Atkinson and Mr Gore told him the "Aurora development would be financed by capital invested by private investors selected by Mr Gore and Mr Atkinson, and Mr Gore and Mr Atkinson were in the process of identifying potential investors and inviting them to invest in the Aurora development," according to the statement of claim.

He alleges he was told "Mr Atkinson and Mr Gore had identified [him] as a potential investor in the Aurora development and wanted to give [him] the opportunity to invest in [it]."

Mr Sterling also said he was told investors "would be guaranteed to make at least five times the amount of their invested capital in profits".

He said he was promised the return of all his invested capital in the second year of the project and further returns of $1 million a year for the next five years.

The money was to be secured by title to the land at Hope Cove but that turned out not to be true and nor was there any guarantee, according to the statement of claim.

Maurice Blackburn Cashman solicitor Eugene Arocca said, "We have been trying for some time to get satisfactory answers as to why our client's investment hasn't been returned and when he can expect payment. We have been forced to take this action to protect our client's rights."

[retro]

Originally Posted by GTRMagic

An interesting article from Thursday's Financial Review....

Aurora developers sued by investor
By Nicole Lindsay, 07/04/2005,

Queensland property developer Craig Gore and his business partner John Atkinson are being sued by a Melbourne investor over the proposed "adults-only" Aurora project on Queensland's Hope Island.
A statement of claim has been lodged in the Victorian Supreme Court by lawyers Maurice Blackburn Cashman, on behalf of investor John Sterling.

Mr Sterling, a retiree, wants his $1 million back, plus compensation for having his money tied up for the past five years.

He alleges a raft of breaches of the Trade Practices, Fair Trading, and Australian Securities and Investments Commission Acts and Corporations Law.

He is suing Aurora Developments, Atkinson Gore Group, John Atkinson, Craig Gore and JE Atkinson & Associates.

Mr Gore, a former bankrupt, is the son of property developer Mike Gore, who fled Australia in 1992 owing $45 million, before his death in 1994.

Craig Gore, who debuted in BRW 's Young Rich List last year with a personal fortune of $140 million, sold the Aurora development to Australand last year for $148 million.

A spokesman for Mr Gore and Mr Atkinson said last night, "Mr Sterling was an investor in the project but all other allegations are rejected.

"The initiation of legal action is reckless and premature. There is a genuine commercial dispute between the parties, which we expect will be resolved."

Mr Sterling alleges he invested $1 million from his family trust into the Aurora development in 2000, on the advice of Mr Atkinson, according to the document.

Mr Atkinson and his accounting firm, JE Atkinson & Associates, had been his accountant and investment adviser since June 1996, according to the statement of claim.

At a meeting in June 2000, Mr Atkinson and Mr Gore told him the "Aurora development would be financed by capital invested by private investors selected by Mr Gore and Mr Atkinson, and Mr Gore and Mr Atkinson were in the process of identifying potential investors and inviting them to invest in the Aurora development," according to the statement of claim.

He alleges he was told "Mr Atkinson and Mr Gore had identified [him] as a potential investor in the Aurora development and wanted to give [him] the opportunity to invest in [it]."

Mr Sterling also said he was told investors "would be guaranteed to make at least five times the amount of their invested capital in profits".

He said he was promised the return of all his invested capital in the second year of the project and further returns of $1 million a year for the next five years.

The money was to be secured by title to the land at Hope Cove but that turned out not to be true and nor was there any guarantee, according to the statement of claim.

Maurice Blackburn Cashman solicitor Eugene Arocca said, "We have been trying for some time to get satisfactory answers as to why our client's investment hasn't been returned and when he can expect payment. We have been forced to take this action to protect our client's rights."

This was a very big story in the Brisbane papers a couple of days ago.

[GTRMagic]

These things always interest me when they hit the Financial Review... and if the claims are correct (and I make no judgement one way or the other) it may prove highly significant....

[Crash Test]

Mr Gore is worth $140mil. Mr Atkinson is worth lotsa. Old mate wants a mil back. I don't think Atkinson or Gore will disappear off the planet any time soon

[GTRMagic]

I dont see them settling this case though....

[GTRMagic]

[fomoco]

reminds me of Bondy buying 9 Network, XXXX etc, then having to sell them back at a poofteenth he paid. Aaaahhh the 80's and 90's of Australian business,.

lets all have credit cards with every known organisation and personal photos on them.

yep, I miss messers. Keating, Hawke, Hewson etc,

Bad business decisions, oops forgot WPS