Wealth accelerator firm folded with $5.6m debts

A southeast Queensland financial investment firm which used “cash flow accelerators” to grow client wealth collapsed with more than $5.65 million worth of debts, according to liquidators.

Omnia Group Pty Ltd director Gordon Smith.

A BUDERIM financial investment firm which used "cash flow accelerators" to grow client wealth collapsed with more than $5.65 million worth of debts, according to a report to creditors.

Omnia Group Pty Ltd, directed by Gordon Smith and registered at Box St, Buderim, was placed into voluntary liquidation in June.

An initial report to creditors distributed in early-July by liquidator Shane Cremin of Rodgers Reidy revealed more than $4.78 million owed to unsecured creditors, including more than $4.1 million outstanding to five related entities.

One of those, NRG Concepts Pty Ltd, listed at the same Box St address and also directed by Gordon Smith, was owed more than $1.13 million.

More than half a million dollars was owed to NRG Mortgage Management, while Omnia Property Group Pty Ltd, also at Box St, was owed more than $1.7 million.

CBRE was owed nearly $100,000, while other significant unsecured creditors included Nationwide Marketing ($144,000) and Avis Australia ($43,000).

Mr Cremin's initial report also found more than $400,000 owed to priority creditors, including $150,000 to the Australian Taxation Office and more than $250,000 owed to 11 staff members.

LIQUIDATION: Omnia Group Pty Ltd director Gordon Smith.

One staff member was owed more than $44,000.

The Daily understood a number of staff had sought to claw their entitlements back through the Federal Government's Fair Entitlements Guarantee scheme.

More than $460,000 was owed to secured creditors, including more than $446,000 to Mercedes-Benz Financial Services.

Liquidators had received an upfront payment of $15,000 to kickstart the liquidation process, but were awaiting creditor approval for further funding, with the total process expected to cost about $25,000-$35,000.

Mr Smith had first been in contact with liquidators in mid-April, to discuss Omnia Group's background, solvency and its role within the group structure.

Mr Cremin's report alleged Mr Smith had, as of July, "failed to provide me with a completed Summary of Affairs within the specified time frame" and he would be reporting Mr Smith's non-compliance to the Australian Securities and Investments Commission.

The Daily attempted to contact Mr Smith for comment.

Originally published as Wealth accelerator firm folded with $5.6m debts