Two former bosses of companies connected to Tasmania’s Hellyer mine face combined debts of more than $8.5 million after a Federal Court judge seized their estates over allegations they funnelled company money to themselves.
Bradley Monks and Rodger Johnston were directors of Hellyer subsidiary Pieman Resources in 2022 when millions of dollars were moved out of company accounts.
Around $2.9 million went from a Pieman trust account to Corporate Hustle and Wilson Street Capital, two firms linked to Monks.
A separate claim alleged Monks took a further $2.4 million from Hellyer Gold Mines through payments to associated companies and personal credit card charges that were never approved.
When new owners acquired the mine in early 2024, they took the pair to court, accusing them of diverting funds for personal gain.
Monks owes $5,474,241.86 under the bankruptcy notice, while Johnston owes $3,016,025.95.
Neither man has faced criminal charges.
Both men maintained the money was owed to the companies that received it and that company boards had signed off on the transfers.
Justice Kylie Downes threw out those arguments on Monday, ruling they were short on detail and had no supporting documents behind them.
She also took aim at how the pair had behaved throughout the legal process, calling their conduct “improper” and pointing to earlier findings that their delays were “bordering on bizarre”.
“The improper conduct of the respondents in the first proceeding is inconsistent with the conduct of a party which has a genuine and bona fide defence to a claim and was the reason that they were denied a hearing on the merits,” Justice Downes said.
The pair responded with a statement saying “in an unfortunate series of events we have been bankrupted on a claim that hasn’t been proven”.
They indicated they would seek legal advice on their options.
The mine now operates under the name Celestial Pacific and has restarted shipments through Burnie Port following a turbulent period that included a government-ordered shutdown and the liquidation of Hellyer Metals.
