This was published 6 years ago
Updated ,first published
A “defective” business model that experts say has reached epidemic levels in the NSW building industry is leaving investors financially broken.
Aidan Ellis, 75, was stunned when the developer and builder of his apartment block could “walk away scot-free” after his companies went into liquidation midway through a battle over defects estimated to be worth in excess of $2 million.
The “six-year nightmare” has forced Mr Ellis into temporary accommodation while his apartment is a demolition site.
The business model, known as phoenixing, refers to behaviour that becomes illegal when it is proven a company was deliberately wound up to avoid paying debts, such as tax and GST.
“It’s disgraceful,” Mr Ellis said. “Thousands of ordinary Australians are losing their life savings.”
The Herald has spoken to several apartment owners like Mr Ellis who are left with no one to sue for…