Henry Kaye's debts could be as high as $81 million, according to recent statements by the "get rich quick spruiker" to Australian Securities and Investments Commission investigators.
Lawyers for Kaye yesterday gave an undertaking to Justice Merkel of the Federal Court that Kaye would not flee Australia prior to a mid-afternoon hearing in Melbourne today.
It is believed Kaye may voluntarily hand over his passport to ASIC under an agreement between Kaye’s counsel and counsel for ASIC.
ASIC will continue its bid to have the Federal court appoint a receiver over the property of Kaye and his company, Property Corporate Services. ASIC are also alleging that without a receiver in place monies owed to PCS by more the 100 Kaye controlled development companies may not be distributed correctly.
ASIC are attempting to use sections of Corporations Act to protect the interests of the unsecured creditors made up of around 1,000 NII property education course participants, who are owed around $15 million.
Kaye recently admitted to ASIC that his development companies were attempting to liquidate property assets to repay creditors.
PCS has emerged as a vital link in the Kaye “cash flow”. PCS owes Kaye’s other entity NII $28.7 million.
However, LAS Investment, a company associated with millionaire Les Smith, is seeking to firm up a $50 million “charge” over monies controlled by PCS and Kaye’s development companies. ASIC investigators described loans between NII, PCS and LAS as “questionable”.
“ASIC investigators have a view that Smith has not advanced the funds at all,” counsel for ASIC disclosed to Justice Merkel.
