A SUPREME court judge has paved the way for a liquidator to sell a Newcastle beachfront apartment and Cooks Hill boarding house linked to notorious fraudster Lemuel Page.
Late last year Page's former wife, Fiona Page, failed in a last-ditch attempt to rescue her floundering property business, Parkway One Pty Ltd, from the hands of liquidator Andrew Scott, of PricewaterhouseCoopers.
This month, Mr Scott was successful in a bid to be appointed receiver and manager of all property and assets, worth millions, owned by the Parkway One Unit Trust.
This includes a boarding house in Cooks Hill, an apartment that overlooks Newcastle beach, where Lemuel Page used to live, and a property at Ashfield.
Mr Scott told the court he planned to sell the properties to repay a $3.4 million debt owed to the National Australia Bank.
The court heard that Mr Scott's investigations into the company, owned and controlled by Ms Page, continued to be frustrated. He previously raised concerns about the company's "commercial morality".
"Examples were given of unexplained accounting entries," Justice Kelly Rees said.
"Rent on the Cooks Hill property appears to have been systematically overstated for at least three years, intercompany loan accounts between the company and related entities have not been reconciled, nor has the liquidator received any evidence of security which it is said that Ms Page and Harmat Nominees Pty Ltd (a related company) hold over the company's assets."
Lemuel Page was convicted of fraud in July 2017 for selling a friend a fake diamond ring for $85,000 and the Newcastle Herald revealed how dozens of Hunter investors and tradespeople lost money to the scam artist.
Despite the couple's separation years ago, Lemuel Page continues to be involved in Parkway One's business affairs.
In December last year, Ms Page attempted to appoint a company owned by Theo Baker, a long-time friend of Lemuel Page's and a former dot.com millionaire who was declared bankrupt in 2014, as the new trustee of the Parkway One Unit Trust.
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The move, that would have given Mr Baker control of the trust's property and assets, was unsuccessful.
Justice Rees said creditors' interests would best be served with Mr Scott in charge of the trust assets so debts could be paid in an "orderly fashion" once the properties were sold.
A liquidator's report reveals Ms Page estimated the three properties to be worth $6.7 million, but Mr Scott declined to provide valuations due to impending sales.
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