Lawyers unable to efficiently help accused ‘Ponzi boss’ Ken Grace, 53

The millionaire boss of a suspected Ponzi scheme that allegedly ensnared a dozen high-profile sports stars has a “history of depression and anxiety”, a court has heard.

Former Goldsky hedge fund director Ken Grace, 53, of Kingscliff.

THE millionaire boss of a suspected Ponzi scheme that allegedly ensnared a dozen high-profile sports stars has a “history of depression and anxiety”, a court has heard.

Lawyers for Ken Grace, 53, of Kingscliff, in northern NSW, told the Supreme Court that Grace’s “state of mental health” had hampered their ability to “efficiently” give him advice. “Upon reviewing some medical documents … (Grace) has had a history of depression and anxiety,” lawyer Emma Salerno told the court.

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The Australian Securities and Investments Commission (ASIC) alleges more than 50 investors paid Grace $16 million, despite him not being licensed to invest, and there is now an alleged $12.5 million black hole in his Goldsky fund.

Grace’s lawyer Cliff Savala told ASIC in a letter on December 17 that “anxious and distraught investors” had been phoning his Varsity Lakes ­office because their identities were revealed in court.

At a brief hearing on December 18, former swim coach Scott Volkers, renowned physiotherapist Victor Popov and Casuarina registered builder Glenn Cartwright, 53, asked the court to intervene in the case.

Former swimming coach Scott Volkers. Picture: AAP/Claudia Baxter

Sports physiotherapist Victor Popov.

Barrister Niall Coburn, for the trio, told the court that Mr Volkers was owed $240,000, Mr Popov up to $400,000 and Mr Cartwright was owed $2.8 million.

Mr Popov is a former Brisbane Lions head physiotherapist and was business development manager for the Goldsky fund.

Others allegedly ensnared in the fund are former AFL player and assistant coach Simon Black ($80,000), Essendon AFL player Devon Smith ($100,000), former AFL player Clark Keating ($100,000), former Olympic swimmer Sam Riley ($50,000) and Riley’s husband Tim Fydler ($100,000), as well as Olympic cyclist Robbie McEwen ($50,000) and Melbourne Storm director of performance Lachlan Penfold ($127,559).

Receiver Anthony Castley, from firm William Buck, alleged $6.85 million had been paid out of Goldsky’s bank accounts, including $852,222 to Grace’s family members, $143,364 on jewels and accessories, $120,583 on groceries, $115,502 on cosmetic surgery, $56,019 on beauty treatments, $97,835 on restaurant meals and another $410,418 on trips, including $144,000 for stays at Sydney’s five-star Park Hyatt hotel.

The case is due back in court on January 16.