Bankrupt child abuser John Millwood ‘simply ignored’ clear warning to stop asset divestment

A wealthy child sex abuser who shed his assets told accountants to ‘simply ignore’ a legal letter warning against further divestment of his fortune, a court has heard.

John Wayne Millwood.

A wealthy child sex abuser who shed his assets, thereby avoiding paying compensation to his victim, told accountants to “simply ignore” a legal letter warning against further divestment of his fortune, a court has heard.

John Wayne Millwood, who in 2016 pleaded guilty to repeated abuse of a boy over five years in the 1980s, divested millions in ­assets to family and friends and declared himself bankrupt.

Now on an Age Pension, the former Launceston pathology practice manager and colonial art collector has avoided paying a cent of $5.3m in civil damages awarded to his victim in 2021.

In Federal Court proceedings, bankruptcy trustee Sheahan Lock Partners is attempting to claw back Millwood’s property, shares and art works – given or sold to family and friends – on behalf of his creditor-victim.

On August 15, 2019, the victim-survivor’s lawyers wrote to Realba Investments Pty Ltd ex­plain­ing the damages claim and warning them “not to sell, transfer or otherwise deal” in Millwood’s shareholding.

On Wednesday, counsel for Sheahan Lock, Stuart Lewin, read to the court an email sent shortly afterwards from Millwood’s ­accountant Ken Davey, of Findex Group, who was assisting with the divestment plan, to a ­colleague.

“The email reads … John has spoken to his lawyer and he says ‘Get it done and ignore the legal letter’,” Mr Lewin read to the court during questioning of ­Millwood.

Mr Lewin then asked Millwood if he had about August 2019 had a conversation with Mr Davey about the legal letter. “No … I wasn’t aware about that letter,” Millwood said.

Questioned again, Millwood said he could not recall telling Mr Davey to “simply ignore” the legal letter.

“I can’t remember whether I told him to ignore it. How could I?” Millwood said.

On September 11, 2019, a Realba director signed off on share changes that effectively saw ­Millwood’s shares transferred to entities ultimately owned and controlled by his daughter, Sarah.

Realba owned pathology practice buildings and the court heard Millwood’s shareholding was worth $30,000 to $40,000 a year, derived from rental income.

Mr Lewin put it to Millwood that he transferred his Realba shares to his daughter’s entities after he had been “served and proceedings and were on foot against you … where the victim sought millions of dollars in compensation”.

“Yes,” Millwood replied.

Court registrar Timothy Luxton later asked Millwood to name the “friends” he told the court were paying his legal fees.

Millwood named two men, including Peter Woof, chair of the John Glover Society, which instigated the well-known Glover Prize for landscape painting.

Under questioning, Millwood – whose once extensive collection of colonial art forms part of the trustee’s investigations – said Mr Woof had previously stored some of his art.

Asked if Mr Woof was still storing art for him, Millwood replied: “Yes … there are two paintings. They are actually not mine. They belong to Sarah … Artwork she purchased from me …. when my superannuation artwork was transferred.”

Hearings were adjourned until November.