CLAIMS by a former client of Newcastle accountant Paul Siderovski that he lost more than $21 million after allegedly receiving "misleading or deceptive" investment advice have been settled out of court.
Sydney property developer and builder Charles Victor McIntosh, of Dee Why, was suing Siderovski and his Newcastle-based accounting firm SiDCOR in an attempt to claw back $21.5 million, interest and undisclosed damages, alleging commercially misleading conduct.
However, after at least one directions hearing in the Sydney Supreme Court earlier this year, the parties have come to an agreement and the matter will not go to trial.
It's understood the case had been settled but the terms are subject to confidentiality agreements so no details will be released.
Siderovski's lawyer, Newcastle-based Anthony Foate, of Catalyst Legal, declined to comment when contacted by the Newcastle Herald.
According to McIntosh, whose claims were detailed in a lengthy summons and heavily disputed by Siderovski, the path to losing his fortune allegedly started in September 2015 at an exclusive event hosted by US self-styled business guru and motivational speaker Tony Robbins.
McIntosh and his wife Natalie Robson had joined Robbins' exclusive Platinum Partnership Program and were at a networking function.
McIntosh claimed it was here that Robbins introduced him to Siderovski, who is also a member of the Platinum Partnership Program and founder of SiDCOR.
A self-made millionaire and long-term Robbins convert, Siderovski brought the now defunct Yogurtland franchise to Australia and made headlines in 2019 following a revolt from franchisees after stores failed to perform as expected.
McIntosh claimed that Robbins told him Siderovski was "an investment guru who could introduce otherwise unobtainable opportunities to his clients", was a "trusted fiduciary for his clients", "could perform miracles for companies and their directors" and was a "tax specialist who could legally save his clients hundreds of thousands or millions of dollars in tax each year".
McIntosh's Australis Investment Corporation ultimately burnt $2 million on shares in accounting software start-up Panalitix Global and his Mac Wealth (Australia) lost $9.5 million on shares in the now liquidated Integrated Green Energy Solutions (IGE), which had ambitious plans to build plants around the world to turn plastics into fuel.
A further $10 million was lost after Mac Wealth (Singapore) loaned it to IGE's fully-owned Dutch subsidiary IGEA.
It is also owed at least $2.4 million in interest on the outstanding loan.
McIntosh, the chief executive of Gannet Developments, blamed SiDCOR, and Siderovski, for the loss of his fortune, alleging their conduct in making "investment representations" was misleading or deceptive, and he never would have invested in the shares or loaned the money if it wasn't for them.
A chartered accountant, who does not hold an Australian Financial Services licence, Siderovski is not legally allowed to provide financial advice on investments.
He pointed the finger at McIntosh as being responsible for the loss of his own fortune.
According to Siderovski, "McIntosh is a concurrent wrongdoer" and he made the alleged misrepresentations about the investments to his three companies, which they relied on.
Mr Foate said in response to the summons that Siderovski did not owe or breach any duty of care and no investment representations were made.
"There was no duty of care to inform McIntosh that shares may go up in value or may go down in value," Mr Foate wrote.
"There was no duty of care to inform McIntosh, a successful man of business, that investment shares involved risk. There was no duty of care to inform McIntosh, a successful man of business, that sometimes loans are not repaid."
- Know more or did you invest in IGE or Integrated Green Energy Solutions? Contact: Donna.page@newcastleherald.com.au
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