In short:
Liquidators say a company which raised millions to build housing for people with disabilities went under after $5 million in cash was withdrawn from company accounts.
asserted
million → say → accounts
Dozens of investors put their savings into the Fairy Meadow House project in Wollongong, which raised about $10 million but nothing was ever built.
asserted
nothing → put → million
The liquidators of Fairy Meadow House said they would lodge a report with the financial regulator and have identified potential criminal breaches by the company director.
asserted
they → say → director
A Sydney developer who raised millions from investors to build housing for people with disabilities has gone bust amid questions over missing company money, in the latest failure to hit the National Disability Insurance Scheme (NDIS) housing program.
asserted
who → raise → program
Liquidators say $5 million in cash was withdrawn from the company directed by Shaun Mowbray before it went under.
asserted
it → say → Mowbray
The money was taken out in 10 separate transactions which the liquidators have been unable to verify as legitimate.
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liquidators → take → which
Mr Mowbray was declared bankrupt in July, with just $150 in the bank.
asserted
Mowbray → declare → bank
The failure of Fairy Meadow House Pty Ltd, named for the Wollongong suburb where it was supposed to be built, is the latest Supported Disability Accommodation (SDA) scheme to go belly up.
asserted
it → name → suburb
Dozens of investors put a chunk of their life savings into the project before it went into liquidation in May.
uncertain
it → put → May
Several of them were also caught up in the 2024 collapse of other SDA projects led by two other developers — David McWilliams as well as Aiden Garrison and his partner Will McKellar.
asserted
Several → catch → developers
Between Mr McWilliams, Mr Garrison and Mr McKellar, and now Shaun Mowbray, investors have lost more than $120 million.
asserted
investors → lose → million
Mr McWilliams is a Gold Coast developer who came to the attention of authorities after putting $39 million of investor money through the casino and buying lavish sports cars.
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who → come → cars
He is facing criminal charges for misappropriating money.
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He → face → money
The Australian Securities and Investments Commission (ASIC) continues to investigate Mr Garrison and Mr McKellar.
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Commission → continue → Garrison
'I don't believe this'
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I → believe → this
Gregg Stadhams said he was looking at spending the rest of his life overseas because he could no longer afford to live in Australia.
uncertain
he → say → Australia
The retiree and former dentist lost $800,000 in SDA investments, mostly through the three companies.
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retiree → lose → companies
He said paying rent in Brisbane was now untenable, with the vast bulk of his life savings gone.
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bulk → say → savings
"If the current economic situation continues to decline, which it appears to be, then within three to five years, living in Australia as a retiree becomes unsustainable," he said.
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he → continue → retiree
Mr Stadhams was looking at moving to South-East Asia or Eastern Europe where the cost of living was lower.
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cost → look → living
He invested $100,000 in Fairy Meadow House in 2022, expecting to receive 10 per cent return on his investment per year before being paid out after four years.
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He → invest → years
Mr Stadhams said for about two years, the monthly returns were paid "like clockwork" until they stopped about two years ago.
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they → say → clockwork
"Finally we got the letter that [Mr Mowbray is] in liquidation, he's gone bankrupt, and the project itself has gone into liquidation," he said.
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he → get → liquidation
The first response is 'I don't believe this' and then it's like 'not again'.
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it → believe → this
"
Company raised $10m from investors and built nothing
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Company → raise → nothing
The Fairy Meadow development was designed to capitalise on the SDA scheme, where the federal government paid up to $110,000 in rent each year to investors who built speciality housing on behalf of tenants with profound disabilities.
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who → design → disabilities
The NDIS-promoted plan, launched in 2016, was intended to get those clients out of group homes and aged care facilities.
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plan → promote → homes
Fairy Meadow House involved investors putting in a lump sum which was paid interest each month while the disability housing was meant to be built, with the initial sum being returned at the end of a fixed term when the development was meant to be leased.
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development → involve → term
Mr Mowbray raised more than $10 million from 60 investors, but nothing was ever built at the site.
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nothing → raise → site
He did not respond to the ABC's attempts to contact him.
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He → respond → him
Liquidators have discovered more than 10 bank withdrawals from Fairy Meadow House accounts totalling more than $5.28 million were made before the company went under.
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company → discover → million
Mr Mowbray told liquidators the money was to purchase building materials from Thailand but did not provide documentation to support that.
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money → tell → that
The liquidators noted such transactions would normally occur through international transfers rather than cash withdrawals.
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transactions → note → withdrawals
Despite investors being told in investment documents they would own the land at Fairy Meadow outright, two mortgages were taken out on the property.
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mortgages → tell → property
While the property has now been sold, proceeds were expected to go to both lenders with little left over for investors.
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proceeds → sell → investors
Liquidators said they would lodge a report with ASIC and have identified breaches by Mr Mowbray that could potentially be considered under criminal law.
uncertain
that → say → law
Mr Stadhams said he believed that a program to build disability housing, promoted by the government, would have been well-regulated.
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program → say → government
"It's the biggest wake-up call in my life in the sense that I've been exposed to what's really going on … in terms of government regulation," he said.
"
asserted
he → wake → regulation
Mr Stadhams and other investors the ABC has spoken to said their letters to the federal government had largely fallen on deaf ears, with little to no response received.
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letters → speak → response
Government acknowledges dodgy actors in SDA sector
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Government → acknowledge → sector
…and 7 more, not listed.
The Aporia