Fair Trading Minister Doug Shave has given approval for the liquidator of Global Finance, Mr Simon Read, to proceed with recovery action against Mr John Margaria.
Mr Read has already been successful in obtaining an injunction over the assets of the Margarias and their companies.
It is estimated the cost of legal action against Mr Margaria, his wife and their private companies is $275,000.
The State Government has already provided the Ministry of Fair Trading with funding to assist investors to maximise their returns.
Funding for legal action by Mr Read against Mr Margaria is covered under this arrangement.
The Government has committed up to $55,000 for work so far, which includes a Mareva injunction over assets held by Mr Margaria, his wife and their related companies.
“The Government is concerned that investors maximise the return on their investment, and while funding this type of legal action by a liquidator is not traditionally the State’s responsibility, the Government is keen to help in this case,” Mr Shave said.
“If Mr Margaria or his family have misappropriated funds out of Global Finance it is appropriate that they be recovered.”
Media contact: Mike Groves 9213 6500