A bad stench emanates from Wellfully

These brothers and sisters, in particular, are the children of Georges Hatzipapaswho you may know as the former executive chairman of ASX-listed minnow Zyber.

George resigned from Zyber’s board of directors two days before he was declared bankrupt by the Federal Circuit Court in 2020.

That same year, Zyber was delisted after the file-sharing company failed in blockchain technology. A curious $550,000 loan to a party related to George for “personal assistance” also left Zyber with just $33,000 in cash.

But it was one of many weird expenses at Zyber, like the $4,178 in cash that was withdrawn in Las Vegas and the $105 spent at a spa in Vancouver.

Interestingly, two shareholders of Zyber, Justin Puddick and his father John Puddickhad donated $100,000 to an entity called Dyamond Developments, of which George was the sole director (the Puddicks met George on HotCopper in 2017).

This money was apparently intended to invest in a separate company, but ended up being used by Dyamond to purchase shares of Zyber, which were placed in a separate entity associated with George. This all came out in court when the Puddicks sued Dyamond and George.

But back to Wellfully, which isn’t exactly virgin territory for the Hatzipapas clan.

A Wellfully prospectus released in February this year listed an entity called GAKS Investment Holdings as its largest shareholder, with 11% of the shares outstanding (curiously, GAKS never filed a substantial shareholder statement). Yet GAKS was absent from the top 20 holders in Wellfully’s October annual report.

That may be because GAKS went into liquidation in March after the court ruled in favor of Puddick. George’s wife Argiroula Hatzipapas is the only remaining manager of GAKS (although George and his son Savva were both past managers).

A statutory report in June by the liquidator of Cor Cordis André Lakomy noted that GAKS (which traded $10 million of ASX-listed securities over a two-year period) had likely been insolvent since “at least July 1, 2010.”

He also made $5.8 million in payments alleged to be unfairly privileged, unreasonable or non-commercial, and that the directors of Hatzipapas may have breached sections of the law relating to care and diligence, acting in good faith, keeping insolvent financial and transaction records (he hasn’t filed tax returns for over a decade).

These alleged breaches were reported to the Australian Securities and Investments Commission.

The majority of the $445,036 in unsecured creditor claims relate to “overdue legal fees and judgment debts,” presumably related to the Puddick case. The remainder represents $150,000 in claims filed by Savva and her sister Krystal (although the liquidator noted that he had not received details or details of the siblings’ claims). You have to admire the tenacity.

The liquidator asked Argiroula to provide a list of its assets and liabilities so that he could assess the viability of the claims filed against GAKS. This “was not provided”. There was also no original trust deed for GAKS, which was apparently replaced as trustee by an entity controlled by Savva in 2021.

Wellfully shareholders are clearly upset with the executive chairman Paul Perosnot only because the company’s stock price is down 95% since 2019. Although at this valuation it’s a sitting duck for the head of Wellfully steven schaperaof Integrated Wellness Acquisition Corp, a New York-listed SPAC.

Although you wouldn’t really want to introduce the United States Securities and Exchange Commission to something so spicy.

About Valerie Wilson

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