i-Prosperity - Case Update

The liquidators of the i-Prosperity group have obtained a shelf order extending the time to bring voidable transactions claims to March and July 2025, an extension of nearly two years from the date when they otherwise would have been required to bring those claims. Jeremy Nipps and Barry Wight of Cor Cordis were appointed liquidators of the group, which operated as a fund management enterprise and one of the biggest players in Australia’s significant investor visa scheme, in 2020, after the group’s principal, Michael Gu, allegedly misappropriated investor funds. The liquidators explained that the delay in bringing the claims was caused by the challenges they have faced in untangling the affairs of the group, which involved extremely complex structures that were not properly recorded in the companies’ books and records. In addition, the liquidators were hampered by their inability to access relevant documents for a period of time after the relevant server was seized by the Financial Crimes Squad of the New South Wales police force. In granting the extension, the Court found that the proposed claims have “sufficient apparent substance” to justify the liquidators continuing to investigate them to ascertain whether they warrant litigation. Read the decision here.