The judgment further shows Mr King faces a $4.1 million bill from an insurer who had covered his earlier defence costs because negative findings against the former high-flyer triggered an exclusion clause. It is among a massive wave of money owed.
Attempts to obtain comment from Mr King, via his solicitors at Thynne + Macartney, were unsuccessful. He is rumoured to still be on the Gold Coast.Mr King was a lawyer who in 1999 with Phil Adams co-founded Gold Coast-based MFS, which ballooned to have almost $3 billion managed in a string of funds. “I plan for MFS in 10 years to be in the top 50 companies in Australia. It will be a substantial organisation and might look a lot like Macquarie Bank,” he said in 2007.
ASIC argued that while the civil penalty debt was not “provable”, previous case law meant it was still counted as a creditor that could serve a bankruptcy notice and then a creditors petition. Mr King’s lawyers argued another case found courts had “no jurisdiction to make a sequestration order where the debt underpinning a creditor’s petition is not provable in bankruptcy” and courts could only make the bankruptcy order in “special circumstances”.But Justice Downes said the case presented by Mr King’s lawyers only related to statute-barred debts – which have passed a restricted time period – and ASIC did not need to show special circumstances. She agreed with the regulator’s argument.
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