$5m gold bullion twist in hunt for collapsed pub group’s millions
The former director of collapsed hospitality empire Virtical was asked about the mysterious purchase of $5 million of gold bullion as liquidators opened court proceedings in their hunt for tens of millions of dollars linked to fake GST refunds claimed by the group.
Mark Toma was grilled in the Federal Court on Thursday about the affairs of the group, which collapsed last year following a Tax Office investigation into up to $100 million of GST refunds and in the face of lender demands for $90 million of loans.
Asked in court about whether he had attended ABC Bullion in Martin Place in a Range Rover before Christmas last year to purchase $5 million of gold, Toma denied it.
In a strange exchange with lawyers representing liquidator BRI Ferrier, Toma said he knew who attended ABC Bullion on behalf of his business Bond Global Capital.
“Who was that person?” ERA Legal partner Blake O’Neill asked.
“No one did,” replied Toma.
“Your answer is that gold was purchased, but no one purchased it?” O’Neill asked.
Toma replied: “My answer is your question is not entirely correct.”
Toma, an ex-building materials salesman, established Virtical, then known as Core Asset Development, in 2021. John Palasty took over from Toma as director in November 2023 after acting as the group’s development manager and senior advisor. Palasty was due to give evidence on Friday.
The property group exploded onto the Sydney and Melbourne hospitality scene in 2023 after spending more than $125 million in just four months on iconic pubs, including Sydney’s Republic Hotel on Pitt Street, Melbourne’s Adelphi Hotel on Flinders Lane, and signing a $61 million deal for Oxford Street pubs the Courthouse Hotel and Kinselas.
However, The Australian Financial Review revealed that Virtical and its subsidiaries had been claiming tens of millions of dollars in GST refunds for construction work that never happened.
The refunds were claimed using up to $1.5 billion in invoices from Toma’s firm Top Class Constructions, of which he was director from 2017 to 2023.
Asked on Thursday what Virtical was, Toma said it was a brand whose business was development.
“And what did it develop?” O’Neill asked.
“I don’t remember,” Toma replied.
After further lapses in memory, O’Neill asked if Toma had any condition that was affecting his recollection. Toma blamed stress, anxiety and lack of sleep. “Physically I can’t function normally as I’m going through a lot.”
After leaving Virtical, Toma dedicated himself to short-term money lending firm Bond Global Capital, which boasted on its website at the time that Toma had netted $45 million from the sale of his Virtical shares “further solidifying his reputation as a financial luminary”.
“Mark’s astute investments have left an indelible mark on the real estate landscape,” his website said, noting his “remarkable achievements continue to inspire and set a standard of excellence for the industry”.
Toma admitted under oath on Thursday that the sale price for his Virtical shares had been negotiated down from $45 million to $25 million and he ended up receiving between $9 million and $10 million.
He also said he did not have a ledger for his loans, was still searching for an accountant and had not produced a set of financials for the lender.
Asked if he had contact details for borrowers outside loan documents, he said, “I don’t have an answer to that question”.
Toma will return to the court for examinations on Friday. Both he and Palasty have had $52 million of their assets frozen by the court.
