Gold Coast lawyer Beau Hartnett snags deal to pay elderly man a fraction of what he’s owed
He lives in a $3.25m waterfront home and has interests in trusts worth $9.5m but lawyer Beau Hartnett only has to pay a fraction of what he owes an elderly man stung by his “exorbitant” over-charging. Read why
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An elderly man owed nearly $600,000 by a disgraced Gold Coast lawyer will see less than three cents for every dollar owed despite the latter living in a $3.25m mansion with $9.5m in declared interests in trusts.
Anthony Robert Bell was awarded $584,589 after legal wrangles with Surfers Paradise lawyer Beau Timothy John Hartnett, 58. Mr Hartnett eventually lost all of the legal battles.
But Mr Bell, an elderly man living in Lismore, will share less than $80,000 with other creditors under a personal insolvency agreement voted through by one of Mr Hartnett’s companies.
Mr Hartnett, who lives in a waterfront family home worth $3.25m, with declared interests in trusts worth more than $9.5m, claimed he was unable to pay his debts.
The lawyer was earlier found by the courts to have “exorbitantly” charged an elderly client $288,000 and continued to invoice her after she died. He then went after her children for money.
The “exorbitant” fees were taken from the settlement of a property inherited by Mr Bell, who was forced to take on the court actions in an attempt to get it back.
In their report to creditors, insolvency trustees Anne Meagher and Adam Kersey of SV Partners said Hartnett Legal Services had claimed it was owed more than $3.7m by Mr Hartnett, making it his largest creditor.
For a personal insolvency agreement to be accepted, a majority of creditors by number and totalling at least 75 per cent in debt value, must vote in favour.
Four creditors, representing 83.49 per cent of the debts, voted in favour of accepting the proposal with two creditors – including Mr Bell – voting against.
Without the Hartnett Legal Services debt, Mr Bell would have been the largest creditor, with his $584,589 debt making up 99 per cent of the total value.
The agreement will see creditors receive 2.694 cents for every dollar owed.
Hartnett Legal Services is directed by Mr Hartnett and his wife Suzanne Weel, who was not involved in the over-charging.
Proof of the debts owed by Mr Hartnett to his company had not been provided to the trustees when they lodged their report, so are not publicly available.
The Gold Coast Bulletin has contacted Mr Hartnett and the trustees for comment.
Other creditors included Walsh Accountants, owed $1628; MPB Investments, owed $550; and Henry House & Homes, owed $1500.
Mr Hartnett told trustees he had been “negatively impacted by the ongoing litigation involving one of the creditors in the Estate and the adverse media articles resulting from the ongoing court case”.
According to the report, he told the trustees that situation had “damaging effects on his business and his reputation in the profession” that would impact his capacity to earn.
The trustees found that, although Mr Hartnett had interest in several properties via associated entities, they were unlikely to become available to creditors as they were held by trusts.
His previous daily drive – a Tesla X – had been owned by one of his companies and had been sold since he signed his statement of affairs, trustees said.
Mr Hartnett had sold his one per cent share of his family’s $3.25m Isle of Capri home to his wife for $32,500 at some time in December or January, the trustees said.
While Mr Hartnett’s $1.79m in superannuation can’t be touched by creditors, the trustees said their examination of it lead them to “believe additional bank accounts must be held” that were not declared in his sworn statement of affairs.
The statement of affairs, signed by Mr Hartnett in March, said Hartnett Lawyers had been a “ceased legal practice” since October 2021.
However, the Hartnett Lawyers website remained live in March this year, with its listed phone number active and staff taking calls on behalf of the firm. The website has since been deactivated.
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