Agri deal-maker Sam Mitchell declares bankruptcy as creditors circle

One of Australia’s hottest agricultural deal-makers faces a showdown with lenders over his collapsed carbon project.

Wealthcheck boss Sam Mitchell with his wife Andrea Miller.

Sam Mitchell, one of Australia’s hottest agricultural deal-makers, has fallen into bankruptcy.

The Bondi businessman, who made a name for himself snapping up almost $500m in agricultural properties on behalf of various big-name investors, declared bankruptcy as he faced down demands from lenders and creditors pursuing the would-be cattle baron over vast debts.

Mr Mitchell, a former banana bread baker and agricultural property player, appointed Hall Chadwick partners John Shanahan and Matthew Vines as trustees, as a showdown looms with lenders over his collapsed carbon project.

Neither Mr Shanahan nor Mr Vines responded to requests for comment.

Lenders have been circling Mr Mitchell for months, with loans from major financiers such as Rabobank in default across several agricultural projects controlled by the deal-maker, who styled himself as an up and coming player in cattle markets.

The bankruptcy of Mr Mitchell could set in train the collapse of his corporate and property empire, spread over multiple companies and assets across Australia.

The Australian Taxation Office is in pursuit of Mr Mitchell alleging companies he controls or formerly operated have run up enormous unpaid superannuation and tax bills.

These include a $4m debt tied to Mr Mitchell’s key company Wealthcheck Management, as well as a further $3.5m in tax owed by Rivera Farm Management, a business now in the name of his wife Andrea Miller.

Liquidators allege these two businesses traded while insolvent for years, with Mr Mitchell’s Wealthcheck reportedly insolvent for nine years.

Wealthcheck boss Sam Mitchell at his palatial Californian home.

Despite this alleged insolvency Mr Mitchell cut a number of deals across Australia’s agricultural sector in recent years, including buying properties controlled by retail baron Brett Blundy and the late advertising guru Harold Mitchell.

Mr Mitchell had boasted of his former connections to the Harvard Endowment Foundation, striking deals across Australia with the likes of Hartree, indirectly owned by asset giant Brookfield.

The pitch was simple: Mr Mitchell would find the land and co-invest along with the asset managers, as well as assist in the running of the properties.

Mr Mitchell would tell investors he would find tenants, often tying carbon projects to the agricultural assets.

But several of the deals proposed by Mr Mitchell fell through, while other assets purchased by the Bondi businessman collapsed amid a failure to maintain the properties or pay local suppliers.

Sources alleged Mr Mitchell, who operated out of a luxury waterfront apartment in the Sydney suburb, simply refused to pay many companies that provided services to his companies.

This was stated in a liquidators report for Wealthcheck, which noted an owner of a property formerly managed by Mr Mitchell was refusing to allow access to a Toyota LandCruiser Workmate parked at the site.

Sources with knowledge of Mr Mitchell’s agricultural management also claimed he mismanaged several sites, including purchasing unsuitable equipment.

They also alleged several picking machines purchased for one property were complex and required significant maintenance, but when it came time to pay local mechanics Mr Mitchell allegedly did not.

However, the bankruptcy of Mr Mitchell is not expected to conclude the saga surrounding the businessman.

His farm in the Upper McDonald is expected to be seized and sold while several short stay chalets in Western Australia are also exposed to his collapse.

The ATO is also shaping up for a fight with Mr Mitchell, with the tax office serving legal papers on him at his home in San Diego, in California, in recent weeks.

Mr Mitchell relocated to California in the days after the ATO moved to tip his Wealthcheck into administration in June.

Wealthcheck COO Michael Neville.

A spokeswoman for the ATO said the tax office “cannot comment on the tax affairs of any individual or entity due to our obligations of confidentiality and privacy under the law”.

But despite the troubles surrounding Mr Mitchell and the millions owed to staff and suppliers, sources have indicated several figures tied to his former Wealthcheck operation have continued working for him.

They include Wealthcheck’s former chief technical officer Max Reynolds, who did not respond to requests for comment.

Victoria-based chief operating officer Michael Neville, who still lists his employer as Bondi Agri – the other name Wealthcheck traded under – has also been assisting Mr Mitchell.

The Carbon Market Institute recently removed Mr Neville from a policy working group over concerns about Wealthcheck’s participation, given the insolvency of the business.

Mr Neville told The Australian he was “not prepared to comment” when asked about his dealings with Mr Mitchell.

Harvesta, an avocado and citrus export business set up by Mr Mitchell, appears to be still operating despite spruiking its connections to Wealthcheck.

Control of the business, largely set up to sell avocados from north Queensland farms picked up Mr Mitchell, was transferred into the name of Wealthcheck manager Joshua Clementson on June 15, two days after Wealthcheck was placed in administration.

Shares in the business were also transferred into the name of Katherine Clementson as well as a newly registered business Exavo TC, a company registered in August by Mr Mitchell in Western Australia, months after the collapse of Wealthcheck and moves to place it in the hands of ­liquidators.

Harvesta’s website, live until early on Monday, was taken down by late afternoon.

Mr Clementson did not respond to requests for comment.

Originally published as Agri deal-maker Sam Mitchell declares bankruptcy as creditors circle