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Saturday, September 24, 2011

Millionaire calls in loans from siblings

Remember last weekend when the millionaire's wife wept because their riverside mansion was passed in at auction for $4.9 million? Poor thing. She was the wife of Mark McIvor 55, a merchant banker and property investor who is one of the richest men on the Gold Coast.

McIvor has just launched legal action against his younger brother Wayne and sister Janeen Pelly in the Southport District Court. He says that he loaned his siblings around $465,000 over ten years and he wants it back - $259,429 from Wayne and $205,790 from Janeen. He insists that the loans were entered into under the condition that they would pay interest and repay the money on demand. And on 30th May this year, he demanded payment within 7 days so it looks like he didn't get it.

Mark McIvor (2nd from right)

Wayne McIvor was his brother's right hand man at Equititrust, the Gold Coast funds manager whose investors, along with others like City Pacific, have had their investments frozen since 2008. Wayne resigned as a director last year after 17 years faithful service and the brothers haven't spoken since.

McIvor owns three properties in the Gold Coast's most prestigious and exclusive suburb Cronin Island and a beachfront property at Palm Beach. Originally from the Darling Downs, the three McIvor siblings are children of former bookmaker John McIvor.

There is a lesson to be learnt here - never enter into a business transaction with a family member. While it can be very tempting, it usually ends in tears.