The Australian Financial Security Authority (AFSA) and the Inspector-General in Bankruptcy welcome the Federal Court’s decision to declare Jon Angelo George Adgemis bankrupt by a sequestration order.
Her Honour Justice Raper ordered that a sequestration order be made, declaring Mr Adgemis bankrupt as of 18 November 2024. Where costs were sought, Her Honour awarded that they be paid from Mr Adgemis’s estate.
AFSA supported the ATO’s application to be substituted as the creditor and to seek sequestration orders.
AFSA Chief Executive and Inspector-General in Bankruptcy said:
“The decision of the court is an important step in maintaining the integrity of the personal insolvency system.
‘Mr Adgemis owes approximately $1.8 billion, yet his personal insolvency agreement offered $3 million, returning only 0.15 cents in the dollar to creditors, significantly below the average return in bankruptcy cases.
’Bankruptcy provides a longer period in which these debts can now be properly investigated and assets identified, and this will be done by the trustee nominated by the Deputy Commissioner of Taxation.
‘AFSA raised serious concerns about the fairness and public interest implications, noting that creditors include the ATO and the broader Australian community.
‘This outcome underscores the importance of proportionate and purposeful regulation, and AFSA’s commitment to protecting creditor interests and maintaining trust in the insolvency system.
‘The manipulation of personal insolvency proposals and creditor meetings to protect wealth is a priority area for 2025-26 under AFSA’s Regulatory Action Statement.
‘The Inspector-General will continue to act decisively against misuse."
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The Federal Court decision is available for download from the Federal Court website.
