Griffith Central remains open and is trading as normal, despite the court cases. Photo: Oliver Jacques.
Griffith Central owner Frank Violi says it’s “business as usual” at the town’s main shopping mall after winning a civil NSW Supreme Court case against investment company Gemi Pty Ltd, which unsuccessfully filed four contempt of court charges against him.
Judge James Stevenson also ruled that Gemi Pty Ltd must pay all legal costs Mr Violi incurred in fighting the case, in a ruling handed down on Thursday (19 September).
This Supreme Court case related to a matter Region previously reported on – allegations the mall was put up as security for loans worth $22 million in 2020 and 2021.
Mr Violi claims he was a victim of fraud, that this security was granted without his knowledge or consent and the signature on the mortgages was not his. He also said he had never met or spoken to the lender – the company Gemi 169 Pty Ltd.
This case is being contested in the Supreme Court’s civil jurisdiction and an outcome is not expected until mid-2025.
The loan dispute previously led to the company F & L Violi Pty Ltd briefly being placed in external administration on 22 June, 2022. Two assets owned by F & L Violi Pty Ltd – Griffith Central and a property in Strathfield – were placed in the hands of a receiver.
Mr Violi is the sole shareholder and director of F & L Violi Pty Ltd.
On 15 July, 2022, the Supreme Court ruled that the receivers be removed, on the condition F & L Violi Pty Ltd sell the Strathfield property and manage Griffith Central in a particular manner.
The lender, Gemi 169 Pty Ltd, initiated a separate Supreme Court case by filing contempt of court charges against F & L Violi Pty Ltd and Mr Violi, alleging they did not abide by the court-ordered conditions that were set.
The lender alleged Mr Violi did not take out an appropriate insurance policy in relation to the Strathfield property and did not arrange for rent paid for Griffith Central to be deposited into the correct account during the period of receivership.
Judge Stevenson ruled the lender had not provided enough evidence that Mr Violi wilfully breached court orders. He found Mr Violi had no case to answer regarding three of the contempt charges and dismissed a fourth charge outright.
Mr Violi then sought an order that the lenders pay his legal costs for the contempt application.
“I see no reason why I should not make those orders,” Judge Stevenson ruled.
Griffith Central is currently in the hands of a receiver again, though the shopping centre continues to remain open and trade as normal.
“Whilst I respect the court process, the present role of the receiver is to be a caretaker only pending the outcome of the main [Supreme Court loan dispute] proceedings,” Mr Violi told Region.
“That means he is to take in the rent, pay outgoings and maintain insurances. We are working with the receiver to roll out various upgrades and improvements to the centre and look forward to regaining full control following the hearing of our cross-claim to set aside the fraudulent mortgages.”
A NSW Supreme Court order appointed Sydney-based business restructuring expert Andre Lakomy as the receiver and manager of the mall on 29 May, 2024. He has also told Region that the mall will continue to trade and he hopes the public continues to support it.
A company in receivership can continue trading and is not necessarily close to winding up or liquidating.
Griffith Central first opened its doors in October 2007, becoming the biggest shopping centre the town had ever seen.
It was originally owned by Melbourne-based investors but was purchased by Mr Violi in 2019.
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