Ali Sultan’s son Moe contests father’s will in Supreme Court of Tasmania

A court has heard Ali Sultan’s business associates allegedly appointed themselves directors of his company, approved $150,000+ pay rises for fellow directors and the use of estate money to pay school fees, just days after the Tassie property mogul died. READ THE FULL CLAIMS >>

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THE son of late Hobart property developer Ali Sultan is challenging his father’s will, claiming some executors and trustees misused money from the estate and invalidly appointed themselves directors of Sultan Holdings.

The Supreme Court of Tasmania heard allegations on Wednesday some of Mr Sultan’s business associates appointed themselves directors of his company, approved pay rises for fellow directors and one approved the use of estate money to pay the school fees of another’s children.

The well-known businessman died unexpectedly at age 73 on January 24 after a heart attack while walking on kunanyi/Mt Wellington.

Developer Ali Sultan.

His son Moe submitted an amended statement of claim to the Supreme Court last week, which alleged a will made on December 23, 2020 – four weeks before his death – “does not represent the deceased’s testamentary intentions and is not a valid will as he did not know or approve its contents when he executed it”.

While none of the defendants have formally responded to the amended statement of claim, it is expected all defendants will defend it and deny any wrongdoing.

Moe Sultan said in the amended statement of claim his father had limited comprehension of documents written in English and he could not have read and understood the will.

He submitted to the court his father’s last valid will was made in 2018 and if that was not accepted by the court, there was an alternative will from 2012.

Defendants who were appointed as executors and trustees in the December 2020 will include Aziz Gregory Melick – better known as Greg Melick SC – Murdoch Clarke senior partner Damian Egan, Sultan Holdings’ operations manager Ian Creese and project development manager Tim Lucas, and accountant Mark Saltzman.

The court heard Mr Sultan contends the five men invalidly appointed themselves directors of Sultan Holdings in the days and weeks after his father’s death.

Mr Sultan’s other son Saleh and executors from a previous will, Mezen and Mohamad Eid, were also listed as defendants, but no claims of wrongdoing are made against them in the amended statement of claim.

Moe Sultan arrives at the Supreme Court in Hobart on Wednesday.

The amended statement of claim said at the time of his death, Mr Sultan was the sole director and shareholder of Sultan Holdings Pty Ltd as well as two other subsidiary companies and was sole director of another four subsidiaries.

On Wednesday, an application began before Associate Justice Stephen Holt to determine if an independent administrator should be appointed to oversee the estate while the will dispute continues through the court process.

Raoul Wilson SC, who represents Moe Sultan, said any independent administrator would be able to appoint directors of Mr Sultan’s companies and was pushing for two members of staff from Deloitte to be appointed.

Shaun McElwaine SC, who is representing Mr Melick and Mr Saltzman, argued Mr Saltzman should be appointed as the administrator of the estate.

Mr Saltzman, who had worked as the company accountant for Sultan Holdings since 2012, was cross examined by Mr Wilson on Wednesday afternoon.

The court heard he had applied to be the administrator of the estate and when asked who he would appoint as directors if approved, other than himself, Mr Saltzman said he would appoint “the same individuals as is alleged to have been done incorrectly”.

The court heard claims that on January 25, one day after Mr Sultan died, Mr Creese sought to appoint via power of attorney, himself, Mr Melick and Mr Lucas as directors of Sultan Holdings.

Mr Saltzman and Mr Egan were also later appointed directors of the company, the court heard.

Mr Wilson asked if Mr Saltzman was aware it was an employee of Mr Egan’s law firm who drafted the December 2020 will as Mr Egan was on leave.

He said he was not aware.

The court heard Mr Creese was on a salary of $100,000 a year before Mr Sultan’s death and that he was also “in receipt of gifts from Ali”.

“In May this year, the board of Sultan Holdings resolved to increase the wage of Mr Creese from $100,000 to $350,000 a year, is that correct?” Mr Wilson asked Mr Saltzman.

“I believe it was $340,000,” Mr Saltzman said.

Mr Saltzman told the court for Mr Creese to be on $100,000 a year with all the responsibilities he had, “that was not going to cut it”.

The court heard Mr Lucas’s wage was also increased from $100,000 to $250,000 a year by the company directors.

Mr Wilson asked Mr Saltzman if he was aware Mr Sultan had previously paid the private school fees of Mr Lucas’s children, which he said he was.

Mr Saltzman said he became aware of the transfer of $42,000 from the estate to pay for Mr Lucas’s children’ school fees “in the last couple of months”.

“Following the death of the deceased, [Mr Creese] demanded an apartment in a proposed future development at Montpelier Retreat in return for purported promises made by the deceased,” the amended statement of claim said.

Under cross examination in court, Mr Saltzman said “he [Mr Creese] said something similar, not exactly that”.

Mr Saltzman said he would “absolutely” assist Deloitte if they were to take over administration of the estate, with no opposition to the idea “whatsoever”.

The hearing continues on Thursday.

EARLIER, 2.15PM:

The son of Hobart property developer Ali Sultan is challenging his late father’s will, with a number of high profile defendants named in the case.

Moe Sultan said in the amended statement of claim Aziz Gregory Melick, Damian Egan, Ian Creese, Tim Lucas and Mark Saltzman all appointed themselves as director of Sultan Holdings and he is challenging the validity of these appointments.

Moe Sultan at the Supreme Court in Hobart. Picture: Nikki Davis-Jones

Current ASIC documents list all five men as well as Saleh Sultan as current directors of the company as of February 12 this year.

The court heard this morning Mr Sultan’s wife Christine and daughter Sonya both supported the application for an independent administrator of the estate.

Raoul Wilson SC, who represents Moe Sultan, said any independent administrator would be able to appoint directors of Mr Sultan’s companies and is pushing for two members of staff from Deloitte to be appointed.

Shaun McElwaine SC, who represents Mr Melick and Mr Saltzman, are arguing Mr Saltzman should be appointed as the administrator of the estate.

Associate Justice Holt said the crux of the issue over the will dispute was whether the December 2020 will was explained to Mr Sultan and whether he understood it.

The hearing continues this afternoon.

EARLIER:

The son of Hobart property developer Ali Sultan is challenging his late father’s will, with a number of high profile defendants named in the case.

The well-known businessman died unexpectedly at age 73 on January 24 after a heart attack while walking on kunanyi/Mount Wellington.

His son Moe submitted an amended statement of claim to the Supreme Court of Tasmania last week, which alleged a will made four weeks before his death on December 23, 2020, “does not represent the deceased’s testamentary intentions and is not a valid will as he did not know or approve its contents when he executed it”.

Moe Sultan during the eulogy for his father Ali Sultan at the memorial service held at Wrest Point. Picture: Zak Simmonds

While none of the defendants have formally responded to the amended statement of claim it is expected all will defend it and deny any wrongdoing.

Moe Sultan said in the amended statement of claim his father had limited comprehension of documents written in English and he could not have read and understood the will.

The claim has been brought against five associates who were appointed as executers and trustees of the December 2020 will – Aziz Gregory Melick – better known as Greg Melick SC, Murdoch Clarke senior partner Damian Egan, Sultan’s Holdings’ operations manager Ian Creese and project development manager Tim Lucas and accountant Mark Saltzman.

Mr Sultan’s other son Saleh and executers from a previous will, Mezen and Mohamad Eid, are also listed as defendants, but no claims of wrongdoing are made against them in the statement of claim.

The amended statement of claim said at the time of his death, Mr Sultan was the sole director and shareholder of Sultan Holdings Pty Ltd as well as two other subsidiary companies and was sole director of another four subsidiaries.

Moe Sultan has submitted to the court that his father’s last valid will was made on March 30, 2012.

In the Supreme Court in Hobart today, an application is being heard before Associate Justice Stephen Holt to determine if an independent administrator should be appointed to oversee the estate while the will dispute continues through the court process.

Moe Sultan issued a statement this morning regarding the legal proceedings.

“My father Ali was a visionary who loved Hobart, dreamed big, but most importantly loved his family,” Moe said.

“I am taking this action on behalf of my family in order to preserve and protect Dad’s legacy.”