William O’Dwyer of Ralan Group pleads guilty to six criminal charges over “dishonest” loans
A failed developer, whose empire fell apart midway through a massive Surfers Paradise tower, faces jail after pleading guilty to criminal offences over the collapse.
Gold Coast
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Failed developer William O’Dwyer – who built the Ruby tower in Surfers Paradise – could face up to a decade in jail after pleading guilty to six criminal charges over the $323m collapse of his Ralan Group in 2019.
A statement from corporate regulator ASIC alleged Sydney-based O’Dwyer “by deception, dishonestly obtained” loan facilities of $251m for his Ralan companies between April 2015 and June 2018.
“The charges relate to loans advanced to group companies involved in residential development projects in Sydney, Arncliffe, Turramurra and Gordon,” ASIC said in a statement.
“As part of the loan agreements, the companies were required to satisfy lenders that pre-sale deposits paid by purchasers of residences in the developments were held in trust before draw down on the loans could occur.
“Mr O’Dwyer deceived the lenders into believing that the pre-sale deposits were held in a trust account, when in fact they had been loaned by the purchasers back to the respective development company for use as working capital.”
ASIC said about $132m was drawn from the facilities, with approximately $47m repaid by the time the companies in the Ralan Group went into administration.
A further amount is expected to be recouped by the lenders following their purchase and development of the Arncliffe property.
A sentencing hearing is listed in the New South Wales District Court for December 7.
O’Dwyer declared bankruptcy in July 2021 and remained an undischarged bankrupt this week, according to the National Personal Insolvency Index.
In November 2019 the liquidator of the companies, Said Jahani at Grant Thornton, estimated that the Ralan Group owed unsecured creditors $323m.
Administrators found more than $277m in deposits from off-plan buyers in the Gold Coast’s Ruby development had been spent on company expenses.
Buyers who paid deposits between $70,000 and upwards of $100,000 each for apartments in Gold Coast Ruby towers two and three, and for apartments in Sydney, were told there was little chance they would see their money returned.
Hundreds of buyers, many who also worked as sales agents for Ralan, staged a spirited protest outside NSW parliament before the company went into administration in 2019, waving placards saying “Ralan cheating” and “Law enforce now”.
O’Dwyer burst on to the Gold Coast development scene in 2015, spending $95m on development sites, including a 1.14ha block at Surfers Paradise which was approved for two towers before being sold off by Ralan’s receivers.
That site is now slated for La Pelago, a $1.25bn, four-tower development planned by the Gurner Group.
Originally published as William O’Dwyer of Ralan Group pleads guilty to six criminal charges over “dishonest” loans
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