The former boss of collapsed pub group Virtical has been accused of acting as a shadow director, controlling bank accounts and operations for a flagship pub and luxury resort project despite resigning and installing a new director less than a month before the business went under.

John Palasty, also known as John Palasti, resigned as a director of Eden Australasia and The Sapphire Australasia on September 5, 2024. The two companies owned and operated the 120-year-old Hotel Australasia and a $100 million luxury resort project, dubbed the Sapphire of Eden, both in the NSW South Coast town of Eden.