A Musselroe Bay property, once earmarked for a $185 million eco-tourism development, has been conditionally sold to a Melbourne firm despite its seizure by Australian Federal Police in 2019, County Court of Victoria documents show.
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The 1473-hectare property was part of $17.3 million worth of property seized by the AFP in October 2019.
But the property, known as Icena Estate, has been sold by Resort Development Tasmania to a Chinese-born Melbourne businessman Zhiwei Huang under an arrangement overseen by the court.
A spokesman for Mr Huang's company, DCF Musselroe Bay Pty Ltd, has spoken positively about the development, which the firm claims has a perpetual development application from the Dorset Council.
The Australian Federal Police Criminal Assets Confiscation Taskforce seized Icena and several Melbourne properties, alleging they were bought by Chinese nationals laundering the proceeds of crime.
The AFP investigation - titled Operation Gethen - followed a 2017 request from the Chinese Ministry of Public Security for assistance to identify the two Chinese nationals.
Chinese authorities believed the money was raised in China through real estate and bank loan fraud, an AFP press release said.
"The AFP alleges that the two Chinese nationals moved about $23 million of fraudulently obtained funds from China since late 2012 with the proceeds of crime used to purchase or develop numerous properties in Melbourne and Tasmania," the media release said.
Icena was bought by Melbourne Resort Development for $5 million in December 2012.
The company's directors were Aaron Li, 46, and Ying Ma, 47, and Mr Li was the director of the major shareholding company MYQH and Nominees.
AFP believes Aaron Li is also known as Hui Qian, while Ying Ma is also known as Grace Sun.
Melbourne Resort Development changed its name to Resort Development Tasmania in 2015.
Tasmanian Land Titles information shows RDT was the company that owned the land at the time of the AFP seizure. RDT's director was Grace Sun and the shareholder was MYQH and Nominees, owned by Mr Li.
While Mr Li ceased his role as director of RDT in February 2019 he was still director of the major shareholding company, MYQH and Nominees Pty Ltd.
It is unknown whether Mr Qian or Ms Sun might be the Chinese nationals the subject of the AFP's suspicions.
Christian Juebner, counsel for Mr Qian and Ms Sun, declined to comment on the case.
The Melbourne properties seized by the AFP also included what it termed a "supersized mansion" in the suburb of Mont Albert.
The address, 19 Victoria Crescent, Mont Albert, is the address of Grace Sun and Aaron Li, of RDT in Australian Securities and Investments Commission documents.
It is Ms Sun's registered address on the Victorian electoral roll.
Hui Qian is the registered sole proprietor of 17 Victoria Crescent on Victorian land titles - the title subdivided to allow the building of the "supersized mansion".
RDT's registered address at unit 4, 194-196 Whitehorse Road, Blackburn, Victoria, was also seized by the AFP as were several units in the suburb of Box Hill.
Since the AFP seizures, the case has been moving slowly through a process in the Victorian court aimed at enforcing the seizure of the North-East Tasmanian property and the Melbourne properties.
A civil trial is set down for a 15-day hearing in May, in which the AFP will seek to enforce seizure.
However, a further delay is possible because the AFP Commissioner recently informed the court more inquiries may be needed in China.
In the case, Qian, Fan and others v Commissioner of the Australian Federal Police, the AFP is seeking a court order for confiscation.
"Confiscation is the end of the legal proceedings and usually involves a court order that specific property be confiscated to 'the Commonwealth'. Confiscation proceedings can be contested," the AFP website says.
"Once property is officially confiscated the Australian Financial Security Authority will then liquidate the property and bank the proceeds into the Confiscated Assets Account established by the Proceeds of Crime Act 2002."
Court documents show court orders about Icena Estate were varied after an agreement between the Commissioner of Australian Federal Police and DCF Musselroe Bay Pty Ltd. RDT and DCF sought to settle a contract signed in August 2018 and which was amended in March 2019.
Under the judge's orders, the sale was conditionally approved in November 2019 on the condition that:
- Provision of an acknowledgement from the Foreign Investment Review Board that there are no objections to the sale between Resort Development Tasmania as a vendor and DCF Musselroe Bay Pty Ltd.
- That after FIRB approval DCF pay all monies to the Official Trustee to be held as restrained funds until the determination of the proceeding.
A spokesperson for FIRB said: "Treasury does not comment on the application of the foreign investment screening arrangements as they apply or could apply to particular cases". ASIC database records Zhiwei Huang, 34, as the director of DCF Musselroe Bay Pty Ltd.
Last year DCF told The Examiner: "DCF Property's plans for the property are to proceed with the development as per the approved Development Application".
DCF is the third developer to propose a large development at Icena.
In 2007, the property was the site for a $150 million development proposed by a Melbourne property group called Spencer Morgan, a Melbourne firm Connell Wagner and CB&M Design Solutions.
It was proposed to include a 100-room five-star hotel, 300 strata-title units and a 1.7km airstrip.
However, when Spencer Morgan Pty Ltd went to liquidation owing $3.7 million it sold Icena to Melbourne Resort Development for $5.0 million in December 2012. Chinese-born Mr Cheng He Chu was common to both companies.
RDT's $185 million proposal did not proceed.
Ten years on, a Spencer Morgan Pty Ltd director has a link to a further proposed controversial Chinese development in Tasmania.
According to ASIC documents Ronald Xiajun Hu, 60, was a director and major shareholder in Spencer Morgan Pty Ltd, with 150 of 600 shares from 2006 to 2013.
Mr Hu is a director of Cambria Green Agriculture and Tourism Management Pty Ltd which proposes a $138 million development at Swansea.
The development proposes a luxury hotel, 200 villas, a golf course, a conference centre as well as retirement facilities with a crematorium.
Mr Hu is the director and secretary of four companies associated with the Cambria Green development.
- PART 2 TOMORROW: How the state government helped Chinese nationals get citizenship.
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Nick Clark
I am the Supreme and Magistrates Court reporter for the Examiner for the past 18 months. My journalism career has clicked over 30 years and encompasses four different spells at Tasmanian newspapers.
I am the Supreme and Magistrates Court reporter for the Examiner for the past 18 months. My journalism career has clicked over 30 years and encompasses four different spells at Tasmanian newspapers.
