http://www.heraldsun.com.au/business/trio-sued-over-bulla-tip-loa...

http://www.heraldsun.com.au/business/trio-sued-over-bulla-tip-loan/story-e6frfh4f-1225846643208?from=public_rss

Ben Butler
Herald Sun March 29, 2010

CONTROVERSIAL Melbourne businessman Tom Karas and well-known share-trading identity Leo "The Gun" Khouri were among conspirators who fraudulently ripped more than $800,000 from the Bulla Tip & Quarry, it has been alleged.
Bulla tip liquidator Ferrier Hodgson has launched Supreme Court action against the men and former Bulla tip co-owner Andrew Kikuts in a bid to recover the money, which was allegedly paid to Mr Karas and disgraced insolvency practitioner Stuart Ariff.

Police have alleged Mr Karas was involved in a "large-scale money laundering operation" run by a major Melbourne crime family who cannot be named. Mr Karas has previously denied the allegations.

Ferrier Hodgson outlined details of the alleged Bulla tip plot in a statement of claim filed with the court last Wednesday.

The firm alleged Mr Kikut, Mr Karas and Mr Khouri met at Mr Karas' La Trobe St offices on December 13, 2006 as part of a "dishonest and fraudulent" scheme by Mr Kikut to seize control of the tip from the other tip owners, Kevin Burt and Stephen Shields.

Also present at the meeting were Mr Ariff, Mick Gatto associate John Khoury, an unidentified woman and a man named John Flannery, Ferrier Hodgson alleges.

It is alleged that at some time after 2pm, Mr Kikuts signed a set of documents in which Bulla tip took out a "fictitious" $800,100 loan from a company associated with Mr Karas, State Securities.

"The Bulla companies never received the benefit of any advance under the loan agreement or otherwise," the statement of claim alleged.

And because the loan was backdated, it was overdue the moment it was signed, allowing Mr Karas to immediately appoint Mr Ariff as original liquidator, Ferrier Hodgson alleged.

Mr Ariff paid State Securities $400,000 on January 15, quoting the allegedly fictitious loan agreement, Ferrier Hodgson claimed.

Ferrier Hodgson supported the allegation with excerpts from letters and emails between Mr Ariff, Mr Karas and then-State Securities employee Ruth Jackman, who is now the girlfriend of construction magnate Adam Grollo.

Mr Ariff also paid himself $407,000 of the tip money, made up of $257,000 remuneration and $150,000 for purchases he said he made while in control the tip, Ferrier Hodgson alleged.

"In fact, he had paid no such disbursements," the firm claimed.

Last August, the NSW Supreme Court permanently banned Mr Ariff from the insolvency trade after he admitted to misconduct while in control of 11 businesses, including Bulla tip.

Ferrier Hodgson is seeking the return of the $807,000 of Bulla tip's money allegedly paid out by Mr Ariff and an unspecified amount of extra compensation for the loss of the tip business and the land it stood on.

The defendants have yet to file responses to the statement of claim.

Mr Karas and Mr Khouri could not be reached for comment.