Documents filed in court by the corporate watchdog accuse the family behind Diploma Group of receiving millions of dollars from the failed builder-developer through work on private projects, extra salary payments and writing off debt.
Administrators have claimed Diploma traded while insolvent for up to a year before collapsing last December owing subcontractors, suppliers, former employees and others an estimated $60 million.
As part of arguments to persuade the Federal Court to liquidate 21 Diploma companies, the Australian Securities and Investments Commission said members of the Di Latte family may have broken corporate laws. The Di Lattes deny they acted improperly.
The allegations include:
Three family members underpaid Diploma by $2.3 million for work on two homes and a commercial property.
Diploma paid “excessive” salaries and about $460,000 in redundancy and termination payments to four family members about six months before the collapse.
A Di Latte relative wrote off a $2 million debt to Diploma by a family company.
The family are asking stock exchange-listed Diploma’s more than 500 creditors to vote on Monday in favour of a corporate rescue plan instead of liquidation.