Son Alan is after Abe Saffron's millions

UNDERWORLD identity Abe Saffron has been dead for five years but a dispute has erupted over the right to $8 million in assets.

Alan Saffron

UNDERWORLD identity Abe Saffron has been dead for five years but a dispute has erupted over the right to $8 million in assets the executors of his estate didn't know about at the time of his death.

His son, Alan Saffron, has told the Supreme Court that he deserves a share of the recently discovered assets from his late father's illegal gambling, sex and sly grog empire.

In a pre-trial hearing on September 23, Mr Saffron's lawyers told the court that a discretionary trust called the Marshin Trust held $8.2 million.

But the executors say there is only $2 million in net assets left in the Marshin Trust and that Mr Saffron is not entitled to any of it.

Mr Saffron, who lives in Los Angeles, has taken action against the executors of his father's will in an attempt to claim part of the trust.

He received $500,000 from the $23 million estate after his father died, aged 86, on September 15, 2006. But the 63-year-old is claiming this was "manifestly inadequate".

Alan Saffron also argues that since he had a stroke and can't work full-time in his hamburger restaurant, he should receive a larger sum.

Most of his father's estate went to his mistress Teresa Tkaczyk - known as Teri - and Melissa Hagenfelds, his daughter by another mistress Biruta, known as Rita. Other beneficiaries include Melissa's three children and Mr Saffron's five children.

Two of Mr Saffron's children have had personal troubles. Son Adam, 34, had a serious drug problem and son David, 38, was a gambling addict, Alan Saffron said in his affidavit.

He was upset that his half-sister Melissa was a beneficiary of the trust.

He referred to a conversation he had with the executor Victor Bogan.

"I don't think somebody born of my father's mistress and her children should be beneficiaries," he said.

In an affidavit filed with the court, Alan Saffron said his father "was secretive about his assets and his property assets in particular".

"In my opinion it is more than likely that the deceased held other assets which will be identified and realised in the future."

He said his father "liked to have $1 million in cash in various currencies on hand at all times" and "those moneys were kept in safes in three locations", the majority at his "business premises" on Bourke St in Surry Hills.

Mr Saffron said "no cash was declared" when an inventory of assets was filed by the executors.

"I am aware the deceased was the beneficial owner of shares or interests in real property, especially where those properties housed illegal brothels, and that his interests were protected by blind trusts which may or may not have been known to the defendants.

"Consequently it came as no real surprise to me when [executor Victor] Bogan told me in late 2010 that a further property had been found and realised, contributing at least another $1 million to the estate. I also believe that there may be an unrealised asset of $2 million being monies due and owing by Mr David Baffsky to the deceased out of dealings regarding the redevelopment of Luna Park," Alan Saffron's affidavit states.

Mr Baffsky, who now runs hotel chain Accor, denied he has ever had any association with Abe Saffron.

"That's rubbish, there was an exhaustive inquiry into the allegations that found there was no basis," Mr Baffsky said.

Abe Saffron was the bagman for the disgraced premier Sir Robert Askin. He channelled much of his profits into property.

At the height of his power Abe Saffron had interests in an estimated 100 brothels and 50 nightclubs.

Alan Saffron used the court case to accuse his late father of arranging a break-in of his home in an attempt to steal the will of his late mother Doreen and stymie his inheritance. He said that between May 2000 and August 2002 his Los Angeles home was broken into but nothing was stolen.