Wirrina Cove Marina St Vincent manager Stephen Marks accused of ‘siphoning’ berth fees to his other companies

A marina director has credit card and tax-related debts of $339,000 and has been accused of “siphoning” berth fees to other companies, a court has heard.

The management of the Wirrina St Vincent is at the centre of a class action by berth owners against its operator.

• April 2017: Boaties launch lawsuit against marina operator
• January 2018: Operator fails to dredge marina, breaching lease
• September 2018: Operator fails to obey court order to file documents
• September 2018: Trial delayed as director wins more time

A marina director at the centre of a class action has credit card and tax-related debts of $339,000 and has been accused of “siphoning” funds for related businesses, a court has heard.

Stephen Lindsay Marks does not have enough money to undertake “urgent” repairs to the Marina St Vincent, his lawyer has claimed.

Berth owners of the Wirrina Cove marina are suing marina operator New Wave Aerospace in the District Court alleging the company and sole director Mr Marks of using their lease fees for the benefit of “his associated entities”.

The court on Tuesday heard concerns from 64 berth holders that NWA had allegedly “siphoned” off berth fees for Mr Mark’s benefit and his “associated companies” instead of using the money to repairs and maintenance of the marina, as intended.

“There seems to be a huge amount of transactions which involve payments to entities of Mr Marks, he won’t tell us about those,” Alex Lazarevich, speaking on behalf of the plaintiffs, said.

“There seems to be huge amounts that are going to management fees but what we continually wanted the under-lessor to do, things like maintain the marina, he’s not doing and we can’t see evidence that he’s expending money … on keeping the marina in an acceptable condition.
“From the plaintiff’s perspective money just seems to be evaporating into a black hole.”

Stephen Marks outside court during an appearance earlier in the year for an unrelated issue. Picture: AAP / Mike Burton

He argued that under the head lease Mr Marks was obliged to “substantiate” the outgoings.

Mr Lazarevich itemised about $739,000 in claimed repairs and maintenance over the past four years, which he said “appear” to have been paid to two other companies, including a construction company controlled by Mr Marks.

The concerns were raised in a hearing, in part, relating to an application by Mr Marks for the release of $80,000 from a court trust fund to pay accounting fees and marina repairs.

Mr Lazarevich told Judge Patrick O’Sullivan that Mr Marks had filed an affidavit that outlined personal credit card debts of $172,931 and $166,807 owing to the ATO.

He also said that NWA had company debts of $335,000.

“He (Mr Marks) said he used his credit card debts to pay the expenses of the marina, he then exhibits the credit card statements and I challenge my friend to draw attention to any entries on those which would amount to expenses of the marina,” he said.

Mr Mark’s lawyer Justin Stewart-Rattray said his client had done the best he could in the time available to put together an affidavit of his financial position.

“He wasn’t ordered to file credit card statements from four years ago showing all expenses he has paid on behalf of the marina, it’s his current financial statement to the best of his ability … to comply with the orders,” he said.

Mr Stewart-Rattray said the payment from the court for marina repairs was “essential” for the benefits of the plaintiff and defendant.

“At this time my client simply cannot fund these expenses like it can’t fund (accountants) Mann Judd to complete the accounts,” he said.

“At trial in May it may be my client is then held to account and he may be criticised and found he has not done the right thing but this is an urgent matter.

“The complaints from the plaintiffs are coming thick and fast that the marina is not safe, these are essential repairs.”

Judge O’Sullivan adjourned further argument on the matter until tomorrow.