Keystone receivers freeze assets of builder allegedly linked with Chiodo, amid ASIC investigation

A Melbourne man linked with the ASIC investigation into Keystone and Paul Chiodo has had his assets frozen.

Property developer Paul Chiodo.

About $100m worth of assets linked with Robert Filippini have been frozen, amid an investigation into possible misuse of investors funds in Keystone Asset Management.

Mr Filippini requested $20,000 per week be released for living expenses during a brief hearing on Wednesday afternoon, but Federal Court judge Mark Moshinsky rejected that and instead allowed the Melbourne man $10,000 over the next two weeks.

He has a wife and two children, the court heard.

Lawyers for Keystone’s receivers — Deloitte — earlier opposed the $20,000 request, saying the figure was on “any objective view” a lot of money for weekly living expenses.

“The short point is your Honour has an ambit claim of $20,000 … where there is no evidence to suggest these frozen accounts are the only sources of money available,” Deloitte’s barrister Robert Craig KC said.

Director Paul Chiodo from Melbourne-based property developer Chiodo Constructions

The freezing orders were obtained ex-parte three days ago and about $100m of assets linked with him and associated companies have been frozen, the court heard.

Separately, Mr Filippini was set to face a two-day hearing at Melbourne’s Heidelberg Magistrates court from Wednesday over a speeding fine — unrelated to ASIC’s investigation — but his barrister Sam Tovey told the court his client could not attend due to the Federal Court proceedings.

That matter was over an alleged speeding fine from 2020. It has now been adjourned to May next year.

Mr Filippini declined to comment outside the court, alongside his lawyer Tony Hargreaves.

News about the freezing orders came after allegations from the Australian Securities and Investments Commission that Mr Filippini received about $160m for construction work from companies linked with property developer Paul Chiodo without a building licence or written contracts.

That money, according to the corporate cop, is likely to have come from superannuation investments linked with Keystone Asset Management in circumstances where product disclosure statements relating to Keystone’s funds may have contained misleading information about “unregistered schemes” it invested in.

In February, ASIC secured stop orders on a Keystone fund – the Shield Master Fund – amid concerns the PDS did not “adequately disclose conflicts of interest” and that it failed to disclose a change in the directors of Keystone.

The Keystone empire and Melbourne property developer Paul Chiodo

ASIC has also alleged a company linked with Paul Chiodo, Chiodo Corporation, made payments to Mr Filippini’s company City Built, apparently for construction services in respect of the developments relating to loans from one of Keystone’s managed funds, the Advantage Diversified Property Fund.

The watchdog previously secured freezing orders and installed Deloitte as receivers of Keystone via court orders, to preserve investor money while their investigation continues.

In response to The Australian’s story, Mr Chiodo said: “$95M was appropriately and legally paid to City Built and not $160M as falsely alleged”.

“City Build/Mr Filipinni [SIC] was employed to provide construction management and trade services as the head contractor to Seascape Constructions, which is the register [SIC] builder on the projects,” he said in a statement.

According to a set of ASIC’s submissions relating to an earlier hearing, dated August 23, “Chiodo Corporation has made payments to City Built Pty Ltd (City Built), purportedly for construction services in respect of the developments relating to the ADPF (Advantage Diversified Property Fund) Loans.”

“Approximately $160m has been paid by Chiodo Corporation to bank accounts in the name of City Built or its director, Robert Filippini, in the period from 17 January 2022 to 25 July 2024.

“Notably, this occurred in circumstances where Mr Filippini did not hold a building licence until three months ago.

“(As well) there is no written contract between Chiodo Corporation and City Built (or Mr Filippini) with respect to any of the ADPF developments — the arrangements are wholly oral.”

ASIC said City Built was not required to submit a tender or quotes for any of the work it undertook for Chiodo Corporation on the ADPF developments.

“Instead, Mr Filippini would sit down with Mr Chiodo to explain the work undertaken and negotiate a margin, typically between 20-45 per cent,” ASIC’s submissions read.

An affidavit lodged by ASIC alleged the Advantage Diversified Property Fund ledgers showed withdrawals from the Chiodo Corporation account where $37,111,027 was categorised as related to City Built, City Built Seascape or “Robbie Filippini” for a development in Port Douglas, Queensland.

The property to be developed, called the Fairmont, has been stalled after the Queensland planning and environment court refused Chiodo Corporation’s plans to build a “luxury, five-star resort complex”.

Chiodo has lodged an appeal against that decision, with the outcome pending.

ASIC is also concerned about a loan agreement between a company linked with Chiodo, called 75 Port Douglas Road Pty, for the Fairmont, which did not appear to be “(at) arm’s length” and the loan agreement was entered into with no development approval for a five-star resort.

Originally published as Keystone receivers freeze assets of builder allegedly linked with Chiodo, amid ASIC investigation