Aug 26, 2016

Joseph Gutnick’s brother labels fallen millionaire a fraud | Herald Sun

THE brother of Joseph Gutnick has dubbed the fallen millionaire a fraud claiming he sold a home from under him despite it meaning he and his family could be left homeless.
Now the brothers could be forced to face off in the Supreme Court as developers desperately try to have Abraham Gutnick evicted from his home of 14 years.
Joseph and Abraham Gutnick are at war over the sale of the St Kilda East property the former Demons president off-loaded as he faced bankruptcy.
Abraham says the brothers had an agreement dating to 2002 that the house was his in exchange for a Bondi property he says was left to him by their dad Chaim.
But on paper the house stayed linked to Joseph who paid all rent, utilities, rates and associated outgoings.
Abraham Gutnick leaves the Supreme Court. Picture: Jake Nowakowski
The Supreme Court heard today that when selling the property to developers, they were forced to sign a side agreement keeping the deal secret.
Abraham lives in the home with his wife, five children, and 88-year-old mother-in-law.
“We allege fraud against Joseph Gutnick,” his lawyer Kristine Hanscombe QC said today.
“Joseph Gutnick sells his property out from under his brother in a deceitful way.”
Abraham wants to appeal a Victorian Civil and Administrative Tribunal decision handing possession of the property to the developers that bought the home.
The matter is due to go to trial in the Supreme Court where evidence about the alleged agreement is expected to be heard.
Mr Gutnick, who was once worth $300 million, filed for bankruptcy last month.
He claims he has just $16,087 in cash and cash bank deposits, and doesn’t own a car or home, documents filed in support of his bankruptcy state.
He currently has debts of more than $275 million, after a legal dispute with former business partner Indian Farmers Fertiliser Cooperative (IFFCO).
The former Melbourne Football Club president and mining mogul states he has not sold, transferred, or given away any assets worth more than $1000 in the past five years.
Other than general household furniture, Mr Gutnick said he does not own any items of value, including jewellery, artworks or antiques.
shannon.deery@news.com.au

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