Melissa Caddick: Judge in ASIC case raises concern over how to manage estates

A judge has voiced concerns about how the estates of alleged fraudster Melissa Caddick and her business Maliver will be wound up.

A judge has flagged concerns over how businesswoman Melissa Caddick’s estate and that of her business will be divided up as the financial regulator’s case against the alleged fraudster continues.

The Federal Court was told on Monday there was likely to be a significant dispute over which assets belonged in which estate, with a judge pondering if separate people needed to act as receiver for Ms Caddick and liquidator for her business Maliver.

Melissa Caddick went missing the day after ASIC raided her home.

Ms Caddick disappeared on November 12, 2020, the day after her Dover Heights home was raided by the Australian Federal Police as part of an Australian Securities and Investments Commission (ASIC) investigation into her and Maliver.

Her decomposed foot, still encased in an Asics running shoe, was discovered on Bournda Beach near Tathra on February 21.

Just before the grisly discovery was made public, the provisional liquidators appointed to sift through Ms Caddick’s affairs revealed an extraordinary trail of fake documents the missing businesswoman had left behind.

Her decomposed foot was discovered on Bournda Beach more than three months later. Picture: 7 News

In a brief hearing on Monday afternoon, Justice Brigitte Markovic said she was concerned about the potential for a complicated dispute over what belonged to Ms Caddick and what belonged to Maliver.

It could mean there were “different creditors or beneficiaries entitled to different pools or buckets of property” in the competing estates, raising the question of whether separate people need to be appointed, she said.

Bruce Gleeson and Daniel Soire, of Jones Partners, were appointed as provisional liquidators of Maliver and receivers of Ms Caddick’s property in December.

Justice Markovic said someone in Mr Gleeson’s position could find themselves “in a terrible position of conflict” by having to distribute a fund when they are “wearing two hats”.

She said she wanted to be satisfied these issues had been considered before appointing final liquidators and receivers.

Ms Caddick lived near the cliffs of Dover Heights. It is unknown when or how she entered the water. Picture: NCA NewsWire / Damian Shaw

Farid Assaf SC said ASIC had been operating under the assumption that “a contest over who owns what” would take place.

He told the court Mr Gleeson’s evidence stated it was most beneficial and efficient to have a single person in charge of both estates.

A contradictor would also be appointed to represent Ms Caddick in the proceedings, the court was told.

This person – a lawyer who makes submissions to the court in the absence of a defendant to ensure a fair process – will be appointed by the NSW Bar Association president.

The matter is scheduled for a hearing on June 29.