Failed development haunts alleged Coast conman
ALLEGED Sunshine Coast rorter Luke Bracken is being pursued by an ME Bank subsidiary for more than $1m it claims it is owed in relation to a 2008 northern NSW property development.
Mr Bracken is the subject of an ongoing Sunshine Coast police investigation following allegations from several women that he has not honoured the terms of agreements that saw them hand over hundreds of thousands of dollars.
In July 2012, Mr Bracken was arrested in South Africa on charges of having attempted to defraud a businessman of $250,000.
He was subsequently deported back to Australia.
Industry Funds Management (Nominees2) Pty Ltd first claimed in the NSW Supreme Court on June 12, 2015, that Luke David Bracken owed it $1.402m in relation to loans to Green Valley Developments guaranteed by Bracken and Leadshine Pty Ltd a company of which he was sole director and secretary at the time.
The matter which has been ongoing since that date, returned to the Supreme Court on March 3 this year.
A total loan facility of $2.864m was provided by the lender to Green Valley Development, which later became Student Accommodation Lifestyle Pty Ltd, to fund a 31-lot subdivision in Fischer Street, Goonellabah, a suburb of Lismore.
Mr Bracken is named as first defendant and Leadshine Pty Ltd second defendant in filings by Industry Funds Management with the Supreme Court of NSW seeking $1.402m including $1.398m drawn down from the loan facility plus a filing fee of $2816, a services fee of $61 and solicitor's fee of $1051.
At the time he was the sole director and secretary of Leadshine and in that capacity committed it to guaranteeing the loan facility.
Leadshine Pty Ltd, of which Stuart Dixon-Smith is now sole director and secretary, has filed a defence which seeks to isolate Bracken as having not acted in its best interests.
The loan was contingent on the development being completed by June 30, 2008, a deadline Industry Funds Management documents say was not achieved nor any of the commitments honoured.
An amount of $920,500 was drawn down on February 1, 2008, of which $909,500 was used to purchase the land and a further to pay Industry Funds Management's establishment fee.
On February 17, the lender agreed to extend a further $100,000 commercial loan to Green Valley Developments.
The lender says it eventually took possession of the abandoned development site and sold it on January 7, 2014, for $363,636.36 plus GST an amount that ultimately netted it just $290,302.28.
In its defence Leadshine Pty Ltd, whose asset is the Broken Head quarry Bracken has claimed to manage, says at the time the guarantee he had failed hiss fiduciary duties to not to permit his interests to conflict with the interests of the company.
And that further he failed in his duty not to permit his interests to conflict with the interests of Leadshine and his duty not to allow the duties he owed as a director of Leadshine to conflict directly or indirectly with the interests of him personally and of the interests of Green valley Developments.
The defence further alleges that he further failed in his duty not to allow or cause the interests of Leadshine to be affected adversely or to permit, directly or indirectly, any detriment to Leadshine for the benefit of himself or Green Valley Developments.
Leadshine's defence further alleges breaches by Mr Bracken of sections of the Corporations Act relating to the discharge of his duties as a director including that he sought to gain an advantage for himself or others to the detriment of Leadshine Pty Ltd and was not acting for proper purpose.
The defence said Leadshine was to gain no benefit from the guarantee Mr Bracken provided.
And it states that having regard to the circumstances in which the "Purported Leadshine Guarantee" was entered Industry Funds Management and or the ME Bank were aware of the matters now raised in Leadshine's defence.
According to available documents Mr Bracken has not filed a defence.