Licensing Court finds developer and Callington Hotel owner Stephen Marks not ‘fit and proper’ to hold liquor licence
A prominent businessman’s $1.75m plans for an iconic Adelaide Hills pub have come unstuck in court.
Police & Courts
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A prominent businessman who was found to have inappropriately shifted hundreds of thousands of dollars while running the Marina St Vincent has been found to be “unfit” to hold a liquor licence.
The finding by the South Australian Licensing Court throws into doubt hotelier Stephen Marks $1.75m redevelopment of the Callington Hotel, which he can now no longer operate.
Judge Michael Burnett relied on the earlier ruling of the District Court that found Mr Marks had acted dishonestly and in his own interests during his time at the helm of New Wave Aerospace, a company which operated the marina at Wirrina Cove.
Mr Marks and the company were at the centre of a four-year civil claim brought against him by 75 marina berth owners as a result of disrepair at the site.
When the dust finally settled in the District Court, Mr Marks had been ordered to pay more than $200,000.
The District Court found that Mr Marks had taken nearly $601,000 over four years from the company running the marina and transferred it to prop up two other companies in which he had an interest.
Mr Marks’ lawyers referred to the transfers as “robbing Peter to pay Paul” – a phrase the trial judge did not take kindly, labelling the transfers an “inappropriate” use of the money and a breach of contract.
In the aftermath of the judgment the Police Commissioner launched an application to have Mr Marks stripped of his Liquor Licence.
Mr Marks has a lengthy history of holding the licences for pubs and hotels including the Cathedral Hotel, the Yankalilla Hotel, the Union Hotel and the Wellington Cellars.
He argued in court that he had held various liquor licences since 1997 with no issue.
The Licensing Court also heard that Mr Marks had spent $1.75m purchasing and renovating the Callington Hotel.
Mr Marks argued he had never been bankrupt or traded while insolvent and did not have criminal convictions or links to criminal organisations.
A representative for SA Police argued that the finding of the District Court judge following the marina trial was evidence enough to prove Mr Marks was not fit and proper.
Judge Burnett said that while Mr Marks had no outstanding debts or claims, it was not enough to get past the previous actions.
“I consider these matters are outweighed by the dishonest conduct that he has been found by the trial judge to have committed,” he said.
“That conduct provides strong evidence that Mr Marks is not a fit and proper person to hold a licence.”
Judge Burnett concluded that “an honest person” would not have used the money given by the berth owners for his own purposes.
He also dismissed Mr Marks’ claim that there had been a media campaign against him during the marina dispute.
A final order will be made later this month.
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