Former Coalition MP Nick Varvaris allegedly used his position to embezzle millions of dollars from Chinese property developers, according to an explosive report.
As described in a series of documents lodged in the Supreme Court centre Varvaris appears to have pretended to help Chinese investors secure real estate deals in Sydney.
The two property deals under investigation took place between August 2015 and August 2016 as part of a development agreement between Mr Varvaris, Haiye Developments directors Chris He and Haiqiang He, Mr Varvaris’ associate Dennis Kwok, who owns the Pionnier Group, and Mr Kwok’s wife Hua Liu.
In one account, the former member of Barton is accused of swindling $1.1 million from a real estate transaction with help from his partners, while in the second account it is alleged they fraudulently received $3.6 million for an ‘imaginary’ sale.
Haiye Developments claims Varvaris faked a property sale and spent the money on a luxury car, a motorbike, school fees, and on clearing his tax debt.
“Mr Varvaris achieved this by taking advantage of the trust and confidence placed in him by Haiye because he was the former mayor of Kogarah (from 1999 to 2008) and a federal MP,” the report claims.
Haiye also claims Mr Varvaris falsely told them he had a $7.2 million deal to buy the adjoining property, currently the site of a carwash on Princes Hwy, to build another 60 units, even though he had never held negotiations with the owner of that site, Landmark Element. It is alleged Varvaris used a $3.6 million deposit to benefit Pionnier Group and himself.
Two months after the transactions took place it is claimed that the money was transferred to the Commercial Business Centre and A & T Education, both registered to the same property as Varvaris & Co.
In her defence, Ms Liu said she ”did not have any reason to believe there was anything suspicious about paying funds into [the solicitor’s trust]”.
“Varvaris used Liu, who has a command of Mandarin, to relay information in Mandarin to Chris and Haiqiang He,” the documents read.
Neos Kosmos contacted Nick Varvaris’ office, who denied all the allegations as libel. No further comments have been made.
Pionnier, Mr Kwok, and Ms Liu have also denied any wrongdoing over the transactions.