ATO winds up another Sam Mitchell company over $4m tax debt as agricultural empire crumbles

Would-be cattle baron Sam Mitchell was relaxing on the deck of his luxury ocean-view home in the suburbs of San Diego as another company in his agricultural empire disintegrated.

WealthCheck boss Sam Mitchell at his palatial Californian home.

Would-be cattle baron Sam Mitchell was relaxing on the deck of his luxury ocean-view home in the suburbs of San Diego as another company in his agricultural empire disintegrated.

On Friday the Australian Taxation Office secured orders to wind up a company linked to Mr Mitchell, currently controlled by his wife Andrea Miller, with the Federal Court placing Rivera Farm Management into liquidation amid a $4m cash call.

Corporate records show the ATO lodged a $3.5m default notice against the company in March.

The short hearing, which was not contested by Mr Mitchell or his wife, saw the court tip Rivera into liquidation, handing control to Brisbane firm SV Partners liquidators Anne Meagher and David Stimpson.

The ATO declined to comment on its concerns with Rivera Farm Management, with a spokeswoman citing “our obligations of confidentiality and privacy under the law”.

The Rivera business is one of a number of companies controlled by Mr Mitchell, the former Bondi businessman, or his wife Ms ­Miller.

The latest move on Rivera Farm Management business, a party related to Mr Mitchell’s other collapsed entities, may call into question a string of loans distributed across his corporate interests.

Corporate documents show the company had a $359,660 loan to WealthCheck Management.

Corporate records show a further two Rivera operations directly controlled by Mr Mitchell, while Ms Miller, a dating coach and Canadian winery owner, is also linked to a number of companies that make up their collective agricultural interests.

Mr Mitchell, who headed a suite of sprawling agricultural interests trading under a number of names including Bondi Ag and WealthCheck, has built an empire of cattle and cropping properties in recent years.

WealthCheck boss Sam Mitchell has been grounded by the collapse of his cattle business.

The businessman spearheaded a push into cropping operations managed on behalf of major investors, including formerly running Harvard University’s agricultural interests in Australia.

Mr Mitchell has been involved in agricultural deals exceeding $500m over recent years.

In addition he has become embroiled in Brookfield’s alternative asset manager OakTree’s push into Australian agricultural assets. OakTree’s Hartree Partners operation, which has invested more than $1bn since 2015, was forced to take action against Mr Mitchell over their interests in two cattle properties.

Mr Mitchell and Hartree purchased Conway Station for $14.5m, and Benmara Station for $40m, before the relationship turned sour.

Hartree had been targeting carbon assets from the cattle station projects, but the asset managers split from Mr Mitchell over what sources indicated were assurances not being met.

In addition to the latest action, the tax office is already chasing Mr Mitchell over debts accrued by his WealthCheck Management, which court documents reveal owed more than $4m in unpaid superannuation and taxes.

Sources have indicated tax debts across Mr Mitchell’s group of companies could easily exceed $13m, with some questioning why the ATO had been so slow to take action, given many had been accrued over several years.

An administrators report for WealthCheck Management indicates the company probably traded insolvent from at least mid-2018, when it first defaulted on payments to the ATO.

Corporate insolvency firm Worrells alleges Mr Mitchell could be liable for a $6.6m insolvent trading claim from WealthCheck Management, in addition to a litany of other debts accrued across his corporate interests.

Lenders ADM Capital are also pursuing Mr Mitchell’s corporate interests over a loan of about $US35m ($53m) extended to meet the Bondi businessman’s burgeoning financial needs.

Mr Mitchell’s business interests with rural property agent and LAWD boss Danny Thomas are also in receivership over an $18m chunk of ADM Capital claims.

ADM Capital has seized control of Mr Mitchell’s family trust The Edge TC as it seeks to recover funds from his sprawling operations. There is an action before the NSW Supreme Court to bankrupt the businessman.

Mr Mitchell left Australia soon after the ATO launched its first court action, relocating to a palatial four bedroom $US5m home in the suburbs of San Diego, on California’s coast.

The ATO has the power to make a Departure Prohibition Order to block taxpayers with massive debts from leaving the country if the tax office is concerned they will not pay.

Despite all this Mr Mitchell has continued to advocate for his interests in remaining agricultural investment schemes from San Diego.

The Australian is aware Mr Mitchell has contacted a number of investors in recent weeks, demanding funds.

Investors in a water fund controlled by US asset managers Aqua Ceres recently voted to liquidate their holdings after notching up a $21.8m trade in recent weeks.

The businessman has also been actively moving the registration of many of his corporate entities to the offices of WA accounting firm SEER Financial.

Despite his broadsides to investors Mr Mitchell has otherwise refrained from wading into his disintegrating business empire, failing to respond to multiple attempts by The Australian to contact him.

When reached in late June he responded with “hello” before hanging up.