By Sarah Danckert
Melbourne billionaire Heloise Pratt and her wealthy siblings have accused the heiress’ former husband Alex Waislitz of making business decisions that led to money being directed to himself and his family’s charity rather than being paid out to the Pratts.
In a claim filed in the Supreme Court of Victoria this week, Heloise Pratt and Pratt Group Holdings lodged the claim to remove Waislitz as the trustee of the Halex family trust after $1.147 million of payments were allegedly made to Waislitz and his family charity.
“I’m very disappointed that it has come to this”: Alex Waislitz.Credit: Arsineh Houspian
In making the payments, the claim alleges “Waislitz acted dishonestly for his own benefit and engaged in criminality.”
If Pratt is successful, the trust would be managed by an independent party who would oversee the share in payments from the trust to Heloise Pratt and her former husband.
The claim also seeks a wide range of documents from Waislitz relating to the management of the trust, potentially setting the scene for further showdowns between the former close family members.
Waislitz intends to vigorously defend the claim, which he described as inflammatory and damaging.
“I’m very disappointed that it has come to this,” Waislitz said. “It appears to be a highly provocative and unbecoming action in response to failed negotiations which had up until now been kept private.”
The wider Pratt family at a 2010 dinner.
The claim pits Pratt and her wealthy siblings – Visy chairman Anthony Pratt and Fiona Geminder, with a combined wealth of more than $26 billion – against Waislitz, who manages a sharemarket investment business heavily focused on technology companies.
According to the claim, the Pratt siblings are beneficiaries of the trust at the centre of the stoush through the family’s sprawling Pratt Family Holdings Trust.
It is not known how much of Waislitz’s $1.5 billion Thorney investment empire is held in the Halex trust.
Heloise Waislitz (left) and Fiona Geminder at an event in 2012.Credit: John Woudstra
The scrap centres on decisions that were allegedly made at a 2017 board meeting for Waislitz-controlled company Jamahjo.
The claim alleges that at the meeting – held at Thorney’s offices at 55 Collins Street – Heloise Pratt and Waislitz were named as directors of Jamahjo and agreed for 100 per cent of the proceeds of the Halex trust for the 2017 financial year to be directed to Waislitz.
However, Heloise Pratt claims she did not attend the meeting and did not participate in the resolutions.
She alleges that minutes of the meeting were signed by Waislitz as being “true and correct” when they were not accurate.
Billionaire Anthony PrattCredit: Alex Ellinghausen
“The 29 June 2017 Minutes to the knowledge of Alexander Waislitz falsely represented that Heloise Pratt attended a Board Meeting of Jamahjo on 29 June 2017; and Jamahjo had exercised its power under ... the Halex Family Trust Deed to appoint income, when it had not,” the claim alleges.
“Alexander Waislitz has wrongfully taken it upon himself to act as the trustee of the Halex Family Trust with respect to its net income for the Accounting Period ending 30 June 2017, thereby making himself trustee de son tort of the Halex Family Trust, such that in breach of trust he has wrongfully dealt with the net income of the Halex Family Trust for the Accounting Period ending 30 June 2017.”
Under Australian law, civil claims have to be filed within six years of the alleged event taking place, unless the claimant can prove that fraud or a mistake has taken place.
The claim adds that Waislitz is liable for “wilful default” of overseeing the trust and should pay equitable compensation.
“Alexander Waislitz knew that signing minutes falsely represented that a trust power had been exercised and that to direct the company secretary to give effect to that ineffective exercise of power would bring about a breach of trust, which in fact is what was brought about by the payment, application or setting aside of trust income in favour of [Waislitz Charitable Corporation] as trustee of the Foundation,” the claim alleges.
In a statement on Thursday, Waislitz said: “From the outset, my ex-wife chose to have no involvement at all in Thorney’s day to day operations.
“To come forward now with this claim and seek to involve other individuals, including my brother Avee, is offensive.
“Our son Jake has recently joined Thorney with the full support of his mother, and I feel sad that he and his siblings now must witness this dispute being played out in public.”
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