The Privium group of companies, which chiefly built homes, was placed into liquidation in late December, a month after voluntary administrators were appointed to the flailing firm.
Liquidators FTI Consulting, in a report released this week , concluded Privium had likely been trading while insolvent since late August.
Its collapse left hundreds of homes unfinished and their prospective occupants unsure where to turn.
At the time of the collapse Privium chief executive and founder Rob Harder said he was “deeply sorry”.
“I understand that this is not the news you wanted to hear and that this will create real difficulties,” he said in the email, reported the ABC .
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Privium was officially wound up in December 2021.
Picture: Adam Head.Founded in 1999, Privium built homes in Queensland, New South Wales and Victoria under two brands.Privium was the banner for luxury and custom built homes while Impact Homes was for properties aimed at investors and first time buyers.
Many of the group’s companies were registered to an address in Rochedale, in Brisbane’s southern suburbs.
The Privium businesses faced difficulty due to the pandemic, particularly the long lockdowns in Victoria which limited the number of people allowed to work on building sites.
Tighter lending conditions also had an impact.
However the administrators said other factors likely led to the downfall of the companies.
One was an investment of around $3 million in cryptocurrency.
The company had been founded by Rob Harder who was also CEO.Picture: NIGEL HALLETT $3 million crypto splurge
Privium had acquired Bartercard dollars and converted them into a cryptocurrency called Qoin.
Founded in 2019, Gold Coast based Qoin is part of the same company as Bartercard.
“Based on our investigations into the nature of Qoin, it is evident that it is an extremely illiquid asset with its sale limited to a few hundred dollars each day,” the report said.
“Consequently releasing this asset is extremely difficult, if not impossible”.
The administrators went on to state that it was “possible a breach of certain directors duties could have accrued as a consequence of this transaction”.
The company invested $3 million in a cryptocurrency called Qoin Payments to Christian pastoral charity
It wasn’t just the crypto investment that raised eyebrows.
During 2021, four payments were made by Privium to a Christian charity called Love Your World totalling more than $530,000.
A special dividend of $50,000 from Privium to Love Your World was also made in 2019.
The listing for Love Your World on the Australian Government’s charity register states it undertakes “pastoral work as a service pastor and subsequently a stewardship pastor to further the local church”.The organisation’s website no longer appears to function.
The address of the charity, in the Brisbane suburb of Rochedale, is the same as many of the Privium businesses.
The register states one of the directors of the charity is Rachel Harder.
The Courier Mail has reported that she is the wife of Privium founder Rob Harder.
The newspaper further said that the Harders were members of the Hillsong Church.There’s no suggestion Hillsong had any connection to either Privium or the charity.
The administrators have said the transactions to Love Your World “could constitute potential breaches of director’s duties”.
The report also found three payments from an entity called “Open Gold” to Privium totalling $20 million were made on 29 June 2020.
On the same day an identical amount was paid out to an organisation called “The Promise”.
Mr Harder had told the administrators that the transaction was to raise capital and develop a “digital unit trust” called Open Gold.
The administrators said they had sought further clarification about these transactions as so far the “explanation was inadequate”.
The report said at this stage it was unlikely there were sufficient funds left in the company to pay a dividend to priority or unsecured creditors.The report recommended investigations continue into Privium.
News.com.au contacted Ms Harder for comment.
The Courier Mail attempted to contact Mr Harder but were unsuccessful..
