Four companies collapsed from January 2019 to August 2021
Corporate regulator ASIC has disqualified Jamie Charles Farrelly and Gary James Kelly, both based in Canberra, from managing corporations for two years each, in response to their involvement in the collapse of four companies between January 2019 and August 2021.
Farrelly and Kelly were directors of Be Athletic Canberra, A.C.N. 601 334 749 (formerly Tiger Property Group or TPG), and 3 Property Group 13. Kelly also served as a director of and Lifestyle Homes Accounts (ACT). The companies were all engaged in commercial and residential property development in Canberra.
ASIC found that both directors failed to meet the expected standards. Farrelly allowed TPG to lend $7,437,710 without documented terms, resigned before loan repayment, neglected 3PG13's financial affairs, traded insolvently, and deferred tax payments to bolster other companies' cash flow.
Kelly neglected Lifestyle Homes’ ATO obligations, inadequately supervised its financial affairs, traded 3PG13 insolvently, and deferred tax payments to support other managed companies’ cash flow.
ASIC also found that Farrelly and Kelly resigned as directors to safeguard their credit rating, enabling them to manage other group companies. The move also caused harm to replacement director Paul Kenneth Nimal Hamilton’s credit rating, risking his disqualification under s206F.
ASIC barred Hamilton from managing corporations for two years due to his role in the failure of five companies previously directed by Kelly and/or Farrelly.
At the time of ASIC’s decision, these companies collectively owed $9,435,642 to unsecured creditors, with $3,084,593 owed to the ATO and $19,652 to the ACT Office of Revenue.
Since ASIC's October decision to disqualify Kelly and Farrelly, five additional companies within the group – KFT Group (ACT), Stormer Building Group No 2, Stormer Building Group, 3 Property Group 4, and Lifestyle Homes (ACT) No. 1 – have entered into liquidation.
The disqualification applies until October 23, 2025. Farrelly and Kelly are seeking a review of ASIC's decision through the Administrative Appeals Tribunal.
For the ASIC media release, click here.
Read about other recent ASIC stories here and here.
Get the hottest and freshest mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
