Prominent developer sues investment directors after fund collapse costs millions
An investment fund formerly run by a well-known north shore accountant and his Gold Coast colleague has collapsed owing tens of millions of dollars, with investors now taking them to court.
A prominent Sydney property developer is pursuing a well-known north shore accountant and his colleague in court after their investment funds spectacularly collapsed owing tens of millions of dollars.
Multiple investors – including Gannet Developments boss Charles McIntosh – have taken Stonepoint Capital Management investment fund directors Scott Schade and Phillip Hunt to the NSW Supreme Court, alleging they invested in the fund as a result of “false, misleading or deceptive conduct”.
Stonepoint and its associated investment vehicle Fortico Associates collapsed in June and July owing $34,839,202 and $39,961,577.67 respectively, with losses at Fortico partially attributed to $16m completely wiped on failed foreign exchange trades.
Well-known north shore accountant Mr Hunt’s company Hunt Wealth Partners also folded and was bought by WLM Financial Services – where he now works – along with Aspire Wealth Pty Ltd and Audits Pty Ltd in the wake of the Stonepoint collapse.
Liquidators appointed to Stonepoint and Fortico Associates are now investigating whether Mr Schade and Mr Hunt committed any offences, including breaching their directors’ duties and by making loans to directors and related parties.
The Daily Telegraph does not suggest Mr Schade or Mr Hunt have committed any wrongdoing – only that liquidators are investigating the possible commission of offences.
Documents from liquidators appointed to Stonepoint Capital Management and its associated investment vehicle Fortico Associates reveal allegations from investors that Stonepoint failed to act in their best interests by loaning their money to other companies they directed.
Early investigations indicate Stonepoint collapsed when its major asset – an agreed $29.3m loan to Fortico Associates – was unable to be serviced due to losses on foreign exchange trading.
Mr Schade and Mr Hunt set up the Stonepoint fund in May 2021 alongside minority shareholder Jordan Paris of Safeharbour Capital after initially engaging Mr Hunt’s accounting services for his companies.
Between July 2021 and November 2023, liquidator documents disclose the fund received $34.75m in investments and issued 57 shares in the fund to investors, who were described as “wholesale, professional and sophisticated”.
Stonepoint then entered a secured $30m loan agreement with the Fortico Associates investment vehicle for approved investments.
Investors were said to have received consecutive monthly interest payments until February 2024, when they abruptly ceased.
Mr Hunt ceased being a director of Stonepoint in April, and of Fortico Associates in March.
Mr McIntosh’s company and other unit holders then took Stonepoint to the NSW Supreme Court in May 2024, with only one more interest payment for July 2024 paid out subsequently by Stonepoint.
Among notable losses were $12.38m and $4m paid respectively to companies called Pepperstone and Gleneagle Asset Management for foreign exchange trading, allegedly using an algorithm developed by Mr Schade’s associate Cody Burgat.
“The investment resulted in significant losses with no funds remaining on the trading platforms,” the liquidator wrote.
“The liquidators are investigating potential claims against the directors and Cody Burgat.”
The Stonepoint liquidator observed that the company appeared “to have not actively participated in the proceeding up to that point, having failed to comply with previous orders as to evidence and discovery”.
The Supreme Court matter is set down for an estimated 15-day hearing on May 11 next year.
Mr Hunt declined to comment on the matters before the court, while Mr Schade and Mr Burgat were both yet to respond to a request for comment.
Do you know more? Email eliza.barr@news.com.au
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Originally published as Prominent developer sues investment directors after fund collapse costs millions
