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 Fraud racket: OZschwitz solicitors await 'fake debt' ruling

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RR Phantom

RR Phantom

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Fraud racket: OZschwitz solicitors await 'fake debt' ruling Vide
PostSubject: Fraud racket: OZschwitz solicitors await 'fake debt' ruling   Fraud racket: OZschwitz solicitors await 'fake debt' ruling Icon_minitimeFri Aug 16, 2013 1:18 am

The behaviour of an alleged fraud ring made up of solicitors John Voitin and Simon Nixon and Mr Voitin's wife, Clare Sowersby, strikes at the integrity of the legal system, a court has heard.

Fraud racket: OZschwitz solicitors await 'fake debt' ruling SG_729_solicitors-20130815191425959356-620x349

Mr Voitin, Mr Nixon and Ms Sowersby have been accused of using fraudulent judgments of up to $35 million to generate debts owed by financially troubled, rich Australians.

It is alleged the fake debts were then used to force through personal insolvency arrangements under part X of the Bankruptcy Act that paid genuine creditors just cents in the dollar.

Farmer David Cross has brought a Federal Court lawsuit alleging the personal insolvency arrangement of contractor Giuseppe Rullo is part of the scam.
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''It really goes to the manner in which part X agreements are administered in the commercial world,'' Mr Cross' counsel, Mark LaPirow, told the Federal Court on Thursday.

''The administration of the system really depends on people doing what the act requires and making truthful disclosure,'' he said.

Read more: http://www.smh.com.au/business/solicitors-await-fake-debt-ruling-20130815-2rzim.html#ixzz2c6ebvvPE
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