Paedophile ‘shed assets to thwart victim’

A child abuser has confirmed millions of his assets were disposed of to friends and family to ensure his victim could not stake a claim to them if he died.

John Wayne Millwood after pleading guilty to maintaining a sexual relationship with a minor in the Supreme Court in Hobart in 2016.

A child abuser has confirmed millions of his assets were disposed of to friends and family to ensure his victim could not stake a claim to them if he died.

Former wealthy Launceston pathology manager and colonial art collector John Wayne Millwood on Tuesday gave evidence about his massive asset shedding during Federal Court proceedings.

Bankruptcy trustee, Sheahan Lock Partners, is attempting to clawback proceeds from the disposal of Millwood’s property, shares and art works, on behalf of his largest creditor – the survivor of his abuse.

Millwood in 2016 pleaded guilty to abusing a boy over five years in the 1980s, causing him lifelong psychological harm, and served four years jail.

He was sentenced on December 7, 2016, the same day the survivor, known in court as ZAB, lodged an application for civil damages, and the same day the asset shedding began.

ZAB won an Australian record $5.3m damages payout in 2021 but has yet to receive it. Millwood – estimated by ZAB and his legal team to have once had assets up to $8m – declared bankruptcy in July 2022.

Millwood, in his 70s, on Tuesday told the Federal Court in Hobart he was unaware of ZAB’s lawsuit when he decided to divest his assets.

He said he had done so because he thought he was going to die and did not want ZAB laying claim to his estate.

Millwood said his prostate cancer had spread by late 2016, and he wanted to “get my affairs in order”. “I was going to prison and I thought I would die in prison,” he said.

Counsel for Sheahan Lock, Stuart Lewin, asked what affairs needed to be put in order, given he had a recently updated will.

“I didn’t want anything left in my estate,” Millwood replied. “If there’s nothing there, there’s nothing to challenge…I didn’t want to it to be subject to a challenge by (ZAB).”

Mr Lewin told the court Millwood had at a meeting with Sheahan Lock attributed the asset shedding to not wanting ZAB to “get a cent” of his estate. Millwood told the court he disputed the meeting minutes.

In April 2022, The Australian revealed a series of property and share dealings in which Millwood’s assets passed to others, including his daughter Sarah Kate Millwood, former partner Sonia Ann Finlay, Ms Finlay’s son Duncan Thomas Alexander Finlay.

Two properties in St John St, Launceston previously owned by Millwood effectively passed, after December 2016, into the majority ownership of Sarah Millwood or Ms Millwood and Ms Finlay. These properties were in June 2018 sold to Virgin Australia co-founder Robert Sherrard for $2.5m.

Mr Sherrard told the court he had known Millwood, meeting him “occasionally” in gatherings associated with a “coffee group” in Launceston.

The court heard from Ms Finlay that a company Mr Sherrard was involved in had, in 2011 or 2012, sold a home in Low Head to her and Millwood.

In February 2018, Millwood gifted his half-share in this three bedroom home to Duncan Finlay for “$0.00 – natural love and affection”.

Millwood said he was “not directly involved” with any of the transactions”. He said he was in prison and so left it to Ms Finlay and Ms Millwood, who had power of attorney, as well accountant Ken Davey, to put his “affairs in order”.

Ms Millwood was quizzed about her husband’s purchase and recent sale of a house in Paddington, Sydney. She told the court her father had “gifted” her about $500,000, in addition to repaying a loan.

The proceedings have been adjourned to later dates. Ms Finlay, Mr Sherrard, and Ms Millwood have all denied any wrongdoing.