ASIC has disqualified Jamie Charles Farrelly of Kingston, ACT, and Gary James Kelly of Wright, ACT, from managing corporations for two years each due to their involvement in the failure of four companies between January 2019 and August 2021.
Mr Farrelly and Mr Kelly were directors of:
Be Athletic Canberra Pty Ltd (ACN 619 049 740) (Be Athletic);
A.C.N. 601 334 749 Pty Ltd (formerly Tiger Property Group Pty Ltd ACN 601 334 749) (TPG); and
3 Property Group 13 Pty Ltd (ACN 621 691 932) (3PG13).
Mr Kelly was the also a director of Lifestyle Homes Accounts (ACT) Pty Ltd (ACN 625 959 097) (Lifestyle Homes).
The companies were involved in developing commercial and residential properties in Canberra.
ASIC found that Mr Farrelly and Mr Kelly failed to manage companies to the standard expected of company directors in circumstances when:
Mr Farrelly:
allowed TPG to lend $7,437,710 to related entities without documenting the terms of the loans and resigned as a director of TPG before ensuring the loans were repaid;
failed to adequately monitor the financial affairs of 3PG13 and traded whilst insolvent; and
deferred payment of tax in favour of maintaining the cashflow of other companies managed by him, and
Mr Kelly:
failed to ensure Lifestyle Homes complied with its Australian Taxation Office (ATO) obligations to lodge activity statements and payment summaries;
failed to adequately monitor the financial affairs of Lifestyle Homes and 3PG13 and traded 3PG13 whilst insolvent; and
deferred the payment of tax in favour of maintaining cash flow for other companies managed by him.
ASIC also found that Mr Farrelly and Mr Kelly resigned as directors of the companies to protect their credit rating and allow them to manage other companies in the group and caused harm to the credit rating of Paul Kenneth Nimal Hamilton, the replacement director, by exposing him to being disqualified as a director under s206F.
ASIC disqualified Mr Hamilton from managing corporations for two years for his involvement in the failure of five companies where Mr Kelly and/or Mr Farrelly were previous directors (refer 23-291MR).
At the time of ASIC’s decision, the companies owed a combined total of $9,435,642 to unsecured creditors including $3,084,593 to ATO and $19,652 to ACT Office of Revenue.
Since ASIC’s decision to disqualify Mr Kelly and Mr Farrelly in October 2023, five more companies within the group have entered liquidation:
KFT Group (ACT) Pty Ltd (ACN 121 705 495),
Stormer Building Group No 2 Pty Ltd (ACN 136 600 765),
Stormer Building Group Pty Ltd (ACN 130 218 325),
3 Property Group 4 Pty Ltd (ACN 612 200 478) and
Lifestyle Homes (ACT) No. 1 Pty Ltd (ACN 168 332 429).
In disqualifying Mr Farrelly, Mr Kelly and Mr Hamilton, ASIC relied on supplementary reports lodged by liquidator Stephen Hundy of Worrells Solvency and Forensic Accountants.
Mr Hundy was assisted to prepare his reports after ASIC approved funding from the Assetless Administration Fund.
Mr Farrelly, Mr Kelly and Mr Hamilton are disqualified from managing corporations until 23 October 2025.
Mr Farrelly and Mr Kelly are seeking a review of ASIC’s decision by the Administrative Appeals Tribunal.