Allegations of Breaching Freezing Orders Levelled Against McWilliams' Wife

Laura Fullarton, wife of Gold Coast businessman David McWilliams, has been accused of breaching freezing orders related to investor funds designated for disability housing. This marks the second instance of such allegations against the couple, who were previously subject to contempt proceedings initiated by the corporate regulator ASIC for allegedly spending funds intended for creditors.

New Allegations Emerge

According to an affidavit filed by ASIC in the Federal Court, Ms. Fullarton embarked on an overseas trip, traveling to Las Vegas, Los Angeles, and Anaheim for much of February. Bank transactions reportedly show expenditures on car rentals, dining at restaurants such as the Olive Garden, thousands of dollars on hotels, and multiple transactions at the Westin Bonaventure Hotel in Los Angeles.

ASIC also alleges that Mr. McWilliams appears to be in the process of incorporating a company and obtaining a visa in the United Arab Emirates. The case further lists bank transactions showing thousands of dollars withdrawn from an ATM at a Gold Coast gaming venue between August and December.

ASIC asserts these transactions were from accounts allegedly kept hidden from the court and questions the origin and rightful reservation for investors of the $50,000 found within them.

The Defendants' Response

In an affidavit, Mr. McWilliams stated that the payments received were "gifts" provided due to financial hardship experienced by his family. He claimed that their court-allowed weekly allowance had been stopped by receivers, necessitating the opening of new accounts for "survival."

Mr. McWilliams described his wife's trip to the USA as a "cheap" holiday intended to alleviate stress from the ongoing proceedings, with flights largely covered by frequent flyer points.

He explicitly denied pursuing business incorporation in the UAE.

Background of the Investigation

Mr. McWilliams, a former property developer, has been under a two-year investigation by ASIC. He is being investigated for fraud concerning a multi-million-dollar property scheme, which gained national attention after being featured in a Four Corners episode. He reportedly raised over $92 million from hundreds of investors to construct disability housing across Australia until 2024.

ASIC alleges that a significant portion of these funds was misspent. This includes expenditures on luxury cars, a Fijian resort development, $600,000 on a Gold Coast modelling agency, and $3.3 million in cryptocurrency. He also allegedly gambled a staggering $40 million at Queensland casinos, resulting in a reported loss of $4 million.

Investors in the scheme are said to have lost substantial amounts, with some losing the majority of their superannuation.

Current Legal Status

Mr. McWilliams and Ms. Fullarton had their assets frozen by the Federal Court over a year ago to preserve funds for potential distribution to investors. While ASIC has not yet filed criminal charges regarding the failed disability housing scheme, it has initiated contempt proceedings against the couple for allegedly violating these freezing orders.

Court documents reveal that Mr. McWilliams' lawyers requested an additional $25,000 for his legal fees to contest ASIC's contempt application, supplementing the $47,000 already approved by the court. This request was denied by the court-appointed receivers, who cited Ms. Fullarton's recent overseas travel as a reason.

The contempt case is scheduled to be heard in April.