Receivers appointed after $39m gambling spree

The Federal Court has appointed receivers to 13 Gold Coast companies following concerns about how nearly $70 million of investors’ funds are being used after one of its directors placed more than $39 million in bets at Star casinos.

Justice O’Sullivan of the Federal Court of Australia ordered the appointment of Helen Newman and Andrew Fielding of BDO as receivers of the property of ALAMMC Developments Pty Ltd and 12 related corporate entities.   

The ALAMMC group of companies offered people the chance to invest in purpose-built NDIS compatible property development schemes across Australia.

ASIC’s investigation has revealed that since April 2021 about $69.47 million have been deposited into the bank accounts of the Corporate defendants.

ASIC started investigating the companies and its directors, David McWilliams and his wife Laura Fullarton, in February this year after the Queensland Office of Liquor and Gaming Regulation in informed it that between 1 October 2022 and 29 February 2024, Mr McWilliams made bets across all gambling streams at Star Casinos totalling $39,535,728.73, with a total net loss of $3,874,319.56.

Having traced at least some of the funds provided by investors, ASIC concluded that the $39 million used for gambling appeared to have been from those funds.   

The receivers will, among other things, conduct investigations into the amount of investor funds received by ALAMMC Developments and the related entities, and to provide a report to the Court within 28 days.

At the same hearing, Justice O’Sullivan extended  travel restrictions on Mr McWilliams, who is prohibited from leaving Australia until 1 July 2025.

ASIC has also raised concerns that the entities may have raised the money from investors without having the correct Australian Financial Services Licence and that some of the money might have been used to buy property.

“By way of example, Ms Fullarton currently owns four properties,” Justice O’Sullivan said in the judgement. 

“The Gold Coast property where she and her family resides appears to have been purchased, at least in part, using investor funds, but the position is not yet clear in relation to the remaining three properties.

“In view of all of these matters, I formed the view the Court should exercise its discretion to appoint Receivers of the estates of Mr McWilliams and Ms Fullarton.”