Griffith Central remains open despite being in receivership. Photo: Oliver Jacques.
Businessman Frank Violi, 69, says he is looking forward to regaining ownership of his shopping mall Griffith Central, after the NSW Supreme Court dismissed three civil charges of failing to comply with court orders against him relating to a loan dispute.
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. Nevertheless, the shopping centre continues to remain open and trade as normal.
According to Supreme Court documents, the mall was allegedly put up as security for loans worth $22 million in 2020 and 2021.
However, 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 signature. He also said he had never met or spoken to the lender – the company Gemi 169 Pty Ltd.
This matter is now the subject of an ongoing Supreme Court battle.
“Whilst I respect the court process, the present role of the [Griffith Central] receiver is to be a caretaker only pending the outcome of the main proceedings,” Mr Violi said.
“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.”
Griffith Central has a Market Day every third Saturday of the month. Photo: Griffith Central Facebook.
A company in receivership can continue trading and is not necessarily close to winding up or liquidating.
Mr Violi has not been charged with any criminal offences in relation to the disputed loans. The Supreme Court case is being fought in the civil jurisdiction, meaning it relates to property or money and is not a criminal matter.
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, 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, filed 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.
This initiated a separate Supreme Court proceeding to adjudicate on the contempt of court charges.
In this court case, Gemi 169 Pty Ltd 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.
However, on Monday (7 August), the Supreme Court ruled in favour of Mr Violi, finding Gemi 169 did not establish contempt of court on these matters.
“Whilst it was disappointing that Gemi 169 felt it necessary to pursue this application I am pleased that [Supreme Court] Justice Stevenson agreed with me that I had no case to answer,” Mr Violi said.
“I am hopeful now that the parties can focus on the real issues in pursuing those responsible for the fraudulent mortgages registered on my properties.”
Mr Violi says he has reported those allegedly responsible for the “fraudulent mortgages” to NSW Police. Region is investigating his allegations.
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.
The receiver, Mr Lakomy, has told Region the shopping centre remains open for business and that he hopes the public continue to support it.
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