Beyond Bank Australia is suing the CCC, and a couple accused of swindling $5 million from Fremantle Ports, over its rights to sell a property frozen as part of the investigation.
Beyond Bank Australia is suing the Corruption and Crime Commission, and a couple accused of swindling $5 million from Fremantle Ports, over its rights to sell a property frozen as part of the investigation.
It has lodged a writ in the Supreme Court of Western Australia naming Giacomo and Daniela Merolla, and the CCC, as defendants.
Beyond Bank Australia wants to sell the Merollas’ Woodvale home, claiming the couple failed to make mortgage payments, with the net proceeds to be paid to the CCC to be held as frozen property.
Former Fremantle Ports employee Giacomo ‘Jack’ Merolla and his wife Daniela were charged with corruption offences in 2020.
WA Police alleged the couple swindled more than $5 million from Fremantle Ports by transferring the money to overseas bank accounts through fake invoices.
According to the writ, the Merollas signed a mortgage agreement for a house in Woodvale with United Credit Union in 2006. WA-based United Credit Union was subsequently acquired by Beyond Bank Australia in 2008.
Beyond Bank claimed the Merollas borrowed about $517,000, as per a 2013 agreement between the parties, and they were to pay $3,052.30 a month until the principal amount and interest accrued had been paid off.
The credit contract covered by the mortgage puts the Merollas at fault if the payment was not made by the deadline, according to the writ.
Following the charges laid by police, the court granted a freezing order over the Merolla’s property as per an application by the CCC in August 2020.
Beyond Bank claimed it became the owner of the Woodvale house as it holds the mortgage over the property.
However, the writ said the CCC notified Beyond Bank that a person must not deal with frozen property in any way including a sale.
Beyond Bank claimed nothing in the relevant legislation prevented a mortgagor from making payments to the lender for a property under a freezing order.
The writ said law firm Piper Adelman, on behalf of Beyond Bank, gave a notice of intention to sell the mortgaged property after the Merollas failed to pay by the deadline.
Beyond Bank claimed the Merollas were liable to immediately pay the balance of loan under the credit contract, being $468,185.17.
It also alleged the Merollas have refused, failed or neglected to deliver the property.
In the writ, Beyond Bank claimed control of the Woodvale property to sell with the net proceeds, after deducting the money secured by mortgage, to be given to the CCC to be held as frozen property.
Beyond Bank also wants the Merollas to deliver the property as vacant possession.
Business News has contacted CCC but a spokesperson said the commission had not been served with a writ at this point in time.
"If it is before the courts, it is a matter for the courts to determine and is not appropriate for the commission to comment further," the spokesperson said.
