Asset-shedding child abuser John Wayne Millwood declares bankruptcy, ‘stacks’ creditors, gets pension, avoids compo to victim-survivor

A previously wealthy sex offender who divested millions in assets, avoiding a record damages payout to his victim, is receiving a taxpayer-funded pension while “stacking” bankruptcy creditors with family and associates.

Convicted child sex offender John Wayne Millwood (right) with his daughter Sarah Kate Millwood. Millwood is receiving government welfare payments, after divesting assets believed to be worth millions, so far avoiding a record $5.3m court-ordered payout to his victim. Ms Millwood, who denies facilitating her father's divestments, is listed as a creditor. Picture: Facebook

A previously wealthy sex offender who divested millions in assets, avoiding a record damages payout to his victim, is receiving a taxpayer-funded pension while “stacking” bankruptcy creditors with family and associates.

John Wayne Millwood, a 76-year-old Tasmanian former colonial art-collector who in 2016 pleaded guilty to abusing a young boy over five years in the 1980s, causing lifelong harm, declared himself bankrupt in July.

In December 2021, a judge ordered Millwood, also a former pathology practice manager, to pay his victim, known in court as ZAB, $5.3m in civil damages – a ­record payout for Australia.

On the day the civil claim was lodged – December 7, 2016 – Millwood began to divest his fortune, estimated by ZAB and his legal team at $8m, via the sale or gifting of assets to family and friends.

Bankruptcy documents obtained by The Australian show Millwood – described by his trial judge as lacking any remorse and by a parole board as “narcissistic” – now claims to have just $1843 to his name.

John Wayne Millwood after pleading guilty to maintaining a sexual relationship with a minor in the Supreme Court in Hobart.

His super fund, estimated to have been worth millions, is listed as having a zero balance, while he lists as his only income $25,678 a year in “government benefits/­pensions”. Adding further insult to ZAB, Millwood claims as creditors two companies ultimately owned by his daughter, Sarah Kate Millwood, who benefited from Millwood’s earlier share and property divestments.

Millwood has listed as other creditors two long-time associates – lawyer Darrell Grey and a company, Findex Group, in which Millwood’s accountant, Ken Davey, is partner.

A creditors’ report shows Mr Davey referred Millwood to SV Partners, which is now acting as Trustee in Bankruptcy.

Documents show Mr Davey’s Findex Hobart address is the same as that listed as the registered office for the two companies ultimately owned by Sarah Millwood and listed as creditors.

ZAB is “outraged” at his abuser receiving taxpayer-funded benefits, after his divestments, and fearful that despite his compensation constituting 99pc of Millwood’s debts, other creditors linked to Millwood can outvote him.

“It is completely outrageous – what a bloody joke,” said ZAB. “If someone emptied their super of millions in order to receive government welfare, we would call it social security fraud. If someone divested millions in property to avoid a liability to the ATO, we would call it tax avoidance.

“It is outrageous that Millwood has done exactly this to avoid paying a child abuse survivor damages awarded by the courts.

“He will not get away with it. It would make a laughing-stock of our entire system.

“Taxpayers will likely share my outrage. Here is a convicted paedophile, now bankrupt, continuing … his previous lifestyle, while collecting taxpayer-funded welfare.”

Millwood, his daughter Sarah and Mr Davey did not return messages. The Australian does not suggest Ms Millwood has acted improperly.

Lawyers for Ms Millwood have, in correspondence with ZAB’s lawyers, said she “denies that she in any way facilitated her father’s alleged divestment of his assets”.

“Accordingly, Ms Millwood denies that any assets she holds could be recovered by a trustee in bankruptcy,” her lawyer advised ZAB in May.

Mr Grey said Millwood had failed to pay one of his legal bills, listed at the value of $5500, and he was therefore a genuine creditor.

He refused to answer further questions.

ZAB said he feared that despite his payout dwarfing the debts to other creditors, he may be unable to influence the bankruptcy process and any vital asset clawback.

“I am advised that in creditor meetings, votes are on creditors by numbers basis,” he said. “I control 99pc of the debt but I am advised that I would have to make an application to the Federal Court seeking to stop ‘creditors by numbers’ outvoting me.

“It is difficult to escape the conclusion that Millwood has stacked the creditors … What kind of person goes to these lengths to avoid paying damages to child abuse ­victims? What kind of people are happy to assist?”