Accountant to repay interest on unauthorised transfers
A Victorian accountant breached his fiduciary duty after making "unauthorised transfers" from an 88-year-old's SMSF.
The Supreme Court of Victoria heard that 88-year-old June Patricia Kirk, the trustee of her family SMSF, had given powers of attorney to Michael George Wortman in 2004 and 2009, which he used to transfer "very substantial sums of money" to PBP Accounting Solutions Pty Ltd, which he was director and secretary of.
Kirk and the other members of the Talpa trust, alleged that Wortman transferred more than $3.8 million to PBP's bank account following the sale of five parcels of land, without Kirk's approval.
The plaintiffs further alleged that between 9 March 2011 and 19 November 2013, Wortman transferred $415,550.28 from Talpa's bank accounts to PBP's.
The court ruled that Wortman breached his fiduciary duties to Kirk by making unauthorised transfers between July 2005 and November 2013.
However, the court found that "as the money was paid into the bank accounts of PBP", both Wortman and PBP were "making the most beneficial use of the funds by earning compound interest", and they had not deprived Kirk or the SMSF from their money.
The court ordered that Wortman and PBP pay compensation in favour of Kirk and Talpa, with interest on the monies transferred to PBP's accounts to be paid at a rate of five per cent.
AUTHOR
Nicholas O'Donoghue
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