Former Chapel St nightclub king hit with new financial woes

The one-time boss of a Chapel St nightclub has had a second business put into liquidation amid tens of thousands of dollars in unpaid debts and a money laundering investigation in the US.

Former boss of Chapel St club Boutique, Samuel Prosser has had a second timber business put into liquidation.

The financial woes of a former Melbourne nightclub king have worsened with another of his companies collapsing amid tens of thousands of dollars in unpaid debts and a money-laundering investigation in the US.

Former boss of Chapel St club Boutique, Samuel Prosser, who was swept up in a reported global crime investigation earlier this year for allegedly conspiring to import tobacco products, has had a second timber business put into liquidation.

Victoria’s Supreme Court appointed a liquidator to Mr Prosser’s company, Ziggy T, in December.

That came after Melbourne builder H&G Constructions, which trades under the name Sidhu Family Homes, launched legal action over unpaid debts of more than $60,000.

The court also recently appointed a liquidator to another of Mr Prosser’s companies, Xperience Edge, which is housed under Ziggy T, over an $80,000 debt owed to building supplier Accurate Construction Services.

Sidhu Family Homes owner Surinder Pal Singh Sidhu claimed Mr Prosser, 37, owed his company $64,622 in deposits for pine timber that was never delivered.

“The debtor was unable to provide the goods under the invoice and has not refunded the amount despite agreeing to refund on many occasions,” Mr Sidhu’s lawyer Yudhvir Rangi of Rangi Lawyers argued.

Prosser was swept up in a reported global crime investigation for allegedly conspiring to import tobacco products. Picture: Australian Federal Police

Mr Prosser’s lawyer, Michael Anderson of Kingsford Lawyers, said the original $131,250 paid by Mr Prosser to the supplier of the timber had been “frozen” due to a money laundering investigation in the United States.

“The timber pursuant to this purchase has been sold to a third party however the funds have been frozen and the defendant is unable to complete the transaction at this point of time,” he said.

Mr Anderson said the investigation didn’t have anything to do with the current police charges against Mr Prosser.

“It is an issue being investigated in the United States,” he said.

Mr Anderson said Mr Prosser’s arrest affected his ability to take “substantive steps” to pay off the debt, and argued for an adjournment to allow time for the funds subject to the US investigation to be released.

But Mr Rangi said Mr Prosser’s lawyer failed to disclose the “crucial aspect of duration of incarceration if any” in relation to the tobacco importation charges.

“It is difficult to see how the capacity of Mr Prosser was affected to give instructions or to arrange funds, if he was in custody just for a day or two,” he said.

“The deponent asserts that the freezing of funds and money laundering investigation is not linked to criminal charges against Mr Prosser, but failed to adduce any evidence to support the assertion.

“I believe, if the freezing of funds and the criminal charges are related, the freeze is unlikely to be lifted before the finalisation of criminal matters claimed to be listed for first mention in April 2025.”

Mr Anderson said Mr Prosser’s arrest affected his ability to take “substantive steps” to pay off the debt.

Victoria’s Supreme Court ultimately placed Ziggy T into liquidation and appointed Jeremy Abeyratne of APL Insolvency as liquidator.

Mr Prosser, originally born in New Zealand, registered the Brighton business in 2007.

Police alleged in September Mr Prosser and his co-accused co-ordinated a plot to import 7,460,000 illegal cigarettes into Australia via India and Vietnam.

Authorities estimated a $10m tax loss was on the cards if the cigarettes had made it to the country and sold illegally at street level.

The criminal proceeding has been adjourned to April next year.

Mr Prosser, a well-known heavyweight in nightclub circles, used to run the iconic Chapel St nightclub Boutique which was renamed The Greville under his stewardship.

The famed Prahran nightclub which has hosted overseas stars such as Jason Derulo was shot up in 2016 under the ownership of the late Darren ‘Razzle’ Thornburgh.

He was also heavily involved with Toorak nightclub Trak.

Mr Prosser was contacted for comment.

Originally published as Former Chapel St nightclub king hit with new financial woes