Australia’s former hotel magnate Jon Adgemis faces court fight over $1.8 billion collapse

Jon Adgemis, once a high-profile KPMG executive turned hotel owner, is now tied to the nation’s largest bankruptcy alongside Alan Bond. Facing a $1.8 billion debt, he appeared in Federal Court dressed in an expensive suit, arguing that a public hearing would give the Australian Tax Office an unfair edge. The court allowed the hearing to proceed, with the ATO covering its costs.

Former chief financial officer Alex Andruska accused Adgemis of moving funds across companies to sustain an extravagant life and filing bogus GST refund claims, including a $595,000 claim for undelivered COVID-19 test kits. Insolvency trustees Ben Ho and Scott Pascoe had previously suggested a $2.3 million offer to creditors, a fraction of the debt. The ATO, which has raided his offices before, claims related entities created sham transactions exceeding $1 billion, resulting in over $80 million of improper GST refunds. Adgemis denies wrongdoing and no charges have been filed.