Metropolitan Plumbing owner David Ellingsen faces new woes as his company is embroiled in fresh business debt probe

The embattled owner of Metropolitan Plumbing is facing another legal headache in a multimillion-dollar blast from the past.

David Ellingsen with his wife Natalia. They own the Metropolitan Plumbing empire. Picture: Supplied

The owner of a besieged plumbing company is now embroiled in an investigation into whether its parent business escaped debts worth millions of dollars after its collapse.

David John Ellingsen, 57, allegedly sold assets from a Metropolitan Plumbing controlling company to his wife’s business for “no funds”, weeks before it failed with more than $16m of debts.

A business inquiry is now probing if the actions of the millionaire plumber, of Springfield, plunged Gas and Plumbing Australia Pty Ltd into administration to “defeat” creditors including tax authorities in four states.

Liquidators are also investigating if any director duties or Commonwealth company laws were breached as more disgruntled customers come forward.

David Ellingsen with his wife Natalia. Picture: Flaxley

After he was appointed on April 10, 2024, Gas and Plumbing Australia liquidator Stephen James found “no funds” were paid to Mr Ellingsen’s company from his wife’s business at settlement of an asset sale earlier that year.

“The purpose of my review is to determine whether the whole sale transaction or any part of (it) … was a creditor defeating disposition or breach of director duties, which may give rise to a claim against the purchaser,” his report concluded.

The Australian Securities and Investments Commission (ASIC) says a “creditor defeating disposition” is the disposal of company property to thwart creditors owed money when a business is wound up.

On its website, ASIC also states that “phoenix activity can involve breaches of directors’ duties, including failing to prevent creditor defeating dispositions”.

The Metropolitan offices, near the Tollgate at Glen Osmond. Picture: Tim Joy

Security cameras outside the Flaxley property of David and Natalia Ellingsen. Picture: Kelly Barnes

The probe is another crisis engulfing Mr Ellingsen’s empire as state and federal consumer watchdogs investigate more than 100 complaints against Metropolitan and its subsidiary brands, including alleged overcharging across Australia.

Under federal law, liquidators must report all probe findings to ASIC, which doesn’t comment on individual cases.

The liquidators’ investigation is ongoing and no action has been taken. There is no suggestion of illegal conduct.

This Mount Osmond house near the South Eastern Freeway is owned by a company that Ms Ellingsen owns. Picture: Emma Brasier

ASIC’s website warns that “phoenix activity” is when a new company emerges to continue the business of a liquidated or abandoned enterprise.

This can avoid paying outstanding debts such as taxes, creditors or employee entitlements.

ASIC states it can prosecute directors guilty of “phoenix activity” through civil and criminal courts or impose other sanctions including bans.

Documents filed with the corporate regulator show Gas and Plumbing Australia, which employed staff and invoiced customers, executed an “asset sale agreement” with a “related entity” on March 7 last year.

A Metropolitan Plumbing vehicle on the job. Picture: Darcy Fitzgerald

A creditors’ report found that entity was Plumbing & Gas Pty Ltd – another Metropolitan parent company.

Natalia Kate Ellingsen, 48, is sole director, with 45 linked brands.

Key sale terms included her business buying various assets including its debtors, existing staff – with all their outstanding entitlements – as well as assuming suppliers’ and other “selected” creditors’ liabilities.

The report, sent to ASIC in July last year, found that at that time liability values “exceeded” the worth of purchased assets.

Creditors include the Australian Taxation Office, which is owed at least $14.2m; Revenue SA $254,549; State Revenue Victoria $324,649; Return to Work SA $249,444; State Revenue WA $57,789.03 and Revenue NSW $15,531. It also owes Ms Ellingsen’s company $223,806.40.

Ms Ellingsen’s company bought the assets from her husband’s business without any funds being paid, liquidators found. Picture: Helen Orr

Mr James, a BCR Advisory director, declined to comment on his “ongoing” investigation.

He is already investigating other ­possible corporations law breaches, including Mr Ellingsen’s company trading while insolvent, and chasing personal loans worth more than $4m.

Mr Ellingsen, whose business is in damage control offering discounts, is also director of Gas and Plumbing Pty Ltd that lists 217 national subsidiary brands, records show.

These include Mr Emergency, Only Hot Water, After Hours Plumbing, Air Con Service, Blocked Drains Near Me, Cyber Electrical, Heating and Jim’s Air Conditioning – despite an agreement with Jim’s Group being terminated.

The ATO forced two of Mr Ellingsen’s companies to be wound up 13 years ago after the firms owed creditors more than $3m.

Mr Ellingsen, whose property empire with his wife is worth almost $9m, later bought back his plumbing business.

Mr Emergency van, part of the Metropolitan Plumbing business.

Property records show Ms Ellingsen owns several properties either herself or through a company including the $2.17m Springfield family home, two Flaxley farms near Mt Barker collectively worth $3.1m and the company’s $1.12m Glen Osmond offices.

She also owns a $1.1m Mt Osmond home near the South Eastern Freeway through a company Mount Osmond Holdings Pty Ltd.

The couple, who married more than a decade ago and have children, further own a $1.25m Flaxley estate through a company called Ellingsen Superannuation Pty Ltd, of which they are joint directors.

The Ellingsens have failed to return calls or respond to requests for comment.

There has also been no answer at their various properties.

Originally published as Metropolitan Plumbing owner David Ellingsen faces new woes as his company is embroiled in fresh business debt probe