Legal bid to boot fraudster Michael Issakidis’ wife Donrecka Issakidis from Sovereign Islands mansion on Gold Coast

The Commonwealth has launched legal action to kick the wife of convicted tax fraudster Michael Issakidis out of her swanky Sovereign Islands mansion and sell the property, claiming it is the proceeds of crime.

• Gold Coast cop framed for bizarre robbery
• Police probe reports of Gold Coast public masturbator

THE Commonwealth has launched legal action to kick the wife of convicted tax fraudster Michael Issakidis out of her swanky Sovereign Islands mansion and sell the property, claiming it is the proceeds of crime.

But well-known Gold Coast socialite Donrecka Issakidis has slapped a caveat over the Royal Albert Crescent property – bought for $3.8 million in 2006 – and told federal agencies she had no intention of leaving.

The home of Michael and Donrecka Issakidis at Royal Albert Crescent Sovereign Islands. Picture: Glenn Hampson.

This came despite the property being automatically forfeited to the Commonwealth under proceeds of crime legislation after Mr Issakidis was in September 2018 convicted for his part in a $135 million tax evasion and money laundering scheme.

In April this year, he unsuccessfully appealed his convictions to the High Court of Australia for conspiracy to defraud a commonwealth ­entity and conspiracy to deal with proceeds of crime.

Mrs Issakidis was not charged with any offence, and she was not accused of wrongdoing.

The NSW Supreme Court sentenced Mr Issakidis to 10 years’ jail for his role in the largest tax fraud case ever successfully prosecuted in Australia.

Inside the Issakidis mansion. The house has three levels, a lift, two pools, four bedrooms all with en suites and a five-car basement. Picture: Richard Webb.

On December 1, the Commonwealth of Australia (the Commonwealth) brought a separate application in the Queensland District Court against Mrs Issakidis, to enforce the seizure of her four-bedroom, four-bathroom property.

It is seeking court orders to force Mrs Issakidis to vacate the property within 30 days of the hearing to allow federal agents to enter the address and hand it over to the Official Trustee in Bankruptcy (the Bankruptcy Trustee) for sale.

Michael Issakidis at his committal hearing at Downing Centre Local Court. Picture: News Courp Australia.

But according to court documents, the once palatial home is now in a “dilapidated condition” – requiring major repairs to the pool and drainage, with electrical conduit wires laying loose across paths.

Email correspondence from Mrs Issakidis’ former solicitor in July last year, which was filed as part of the District Court proceedings, shows the once high-flyer’s only income at the time was a Centrelink pension.

Donrecka Issakidis in May 1997 at the Goldbridge ball.

The documents also claimed the woman had suffered carbon monoxide poisoning following she and Mr Issakidis’ failed suicide attempt, shortly before he was originally expected to be sentenced in NSW.

In October 2017, the pair were rushed to hospital after being found unconscious in their garage with several luxury cars running.

The email also said Mrs Issakidis had been unable to pay “insurance, strata levies or council rates” since her husband’s conviction.

The front of the home at Royal Albert Crescent, Sovereign Islands, that the Commonwealth have launched legal proceedings to seize from Donrecka Issakidis. Picture: Richard Webb.

Communication from lawyers for the Commonwealth in 2019 alleged Mrs Issakidis owed $11,708.01 for rates and body corporate fees.

However, an email reply from her former solicitor claimed the outstanding debt was $6040.

A document from May 2020 shows lawyers for the Bankruptcy Trustee had concerns about Mrs Issakidis’ ability to pay the “ongoing ­expenses”.

Donrecka Issaakidis at the Bentley launch in 2005. Picture: Regina King.

An affidavit filed by an employee of the federal bankruptcy watchdog claims Mrs Issakidis repeatedly failed to co-operate with authorities throughout 2019-20 after being given a number of notices to vacate the property.

In the affidavit, an Australian Financial Security Authority case manager claims that in September this year Mrs Issakidis’ lawyer said she “did not intend” to vacate the property within the time frames provided and instead registered a caveat on the property, claiming she has a legal interest in the home.

The grounds of the caveat are to “prevent improper dealings” without the consent of Mrs Issakidis.

Michael and Donrecka Issakdis at the GC Face of 2001 model search. Picture: News Corp Australia.

At the time of Mr Issakidis’ sentencing in 2018, Justice Ian Harrison said the former property developer was ­“motivated by greed” and that “he had an almost unwavering belief in his own ability to explain the inexplicable”.

The well-known Gold Coast glamour couple, who met and fell in love at age 17, were renowned for their lavish lifestyle but those who knew them described Mr ­Issakidis’ wealth as a “front”.

Michael and Donrecka Issakidis at the opening of the McLaren Automotive showroom at Southport. Picture: Regina King.

Mr Issakidis sold up his Sydney law practice and moved to the Coast in the 1980s.

The AFP have already seized millions of the man’s assets including Rolls-Royces, a Lamborghini, an Aston Martin and a BMW following his conviction.

Mrs Issakidis’ matter will be heard in the District Court in Brisbane on December 10.

Follow @alexutting