ASIC Launches Criminal Probe into Failed Queensland Caravan Company Zone RV

The corporate regulator has launched a criminal investigation into a failed Queensland luxury caravan company amid fresh allegations the former director illegally paid dividends to shareholders.

Zone RV collapsed in December owing $42 million to creditors before the Sunshine Coast business was wound up in January.

More than 100 customers, many of them retirees, collectively paid millions of dollars in progress payments for caravans that were never built.

These customers will not receive a cent from the liquidation process, the liquidator Cor Cordis confirmed.

A new owner purchased Zone RV's assets in April to continue the brand but the majority of creditors were left empty-handed.

A Cor Cordis report alleged Zone RV's founder and sole director David Biggar knowingly traded the company long after it was insolvent, accumulating huge financial losses.

After sustained public pressure ASIC has now opened a formal probe into the company's affairs.

ASIC is investigating "suspected contraventions" of multiple sections of the Corporations Act, including criminal offences of a director acting recklessly or dishonestly, according to the letter ASIC sent to people required to give evidence.

The letter states the investigation spans a period of more than four years from July 2021 to December 2025 when the company collapsed.

Mr Biggar has not responded to repeated requests for comment since December.

An ASIC spokesperson confirmed the watchdog's probe but declined to answer specific questions about it.

"We understand these are difficult circumstances for creditors, including those who had paid for caravans that were not completed," the spokesperson said.

Voicemail highlights insolvency concerns

The investigation hinges on when Zone RV became insolvent and whether Mr Biggar acted dishonestly by incurring more debts when the company was failing.

The company's former chief financial officer Kim Hodgkins warned senior management in late 2023 that the company was insolvent, according to emails seen by the ABC.

"As previously discussed, our current [cash] position is we have $527,000," Ms Hodgkins wrote.

"We have $2.1 million of payments that are currently overdue."

Ms Hodgkins was forced out of Zone RV after escalating her financial concerns to shareholders, according to her subsequent WorkCover claim.

In November 2023, Mr Biggar left a voicemail for Ms Hodgkins after directing her to take leave.

"Please just stop all comms … Please don't worry about what we've got going on here," it said.

"I've got [accountants] BDO coming in to give me an understanding of where we're at exactly and what we've got to do to move forward, and what finances I've got to put on the table to get this cashflow sorted."

Ms Hodgkins told the ABC the phone message proved Mr Biggar was aware of Zone RV's financial woes that she repeatedly warned him about.

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Her subsequent worker's compensation bullying claim was upheld, with WorkCover finding she was unfairly treated as retaliation for raising concerns.

"The longer these matters are drawn out, it makes it very difficult to put this part of my life behind me an move on," she said.

"My life really is quite different from what it was [in 2023].

"Unfortunately it's impacted all areas of my life — not in a good way."

Ms Hodgkins has not been able to work since then.

Shareholder payments under microscope

Another aspect of the investigation is whether Zone RV unlawfully paid dividends to its shareholders, despite the company's liabilities allegedly exceeding its assets.

The liquidator identified $27.5 million in potential claims against Mr Biggar, including the alleged dividends which are among $4 million worth of "unreasonable director-related transactions".

The liquidator's report said Zone RV paid dividends despite generating losses and "processing those distributions via shareholder accounts-payable invoices, which masked the nature of the payments".

Ms Hodgkins told the ABC Mr Biggar authorised monthly payments to shareholders by hiding the transfers as consulting services.

The payments were made in the same percentage ratio as their owners' stakes, she said.

The ABC has seen an email Mr Biggar sent Ms Hodgkins in October 2023 confirming Zone RV shareholders would receive $50,000 that month.

"This is a one-off because we cannot commit to what was agreed upon of 150k per month," Mr Biggar wrote.

One invoice seen by the ABC showed a minor shareholder billed the company $2,786 for "advisory and consulting services — monthly fee October 2023".

The amount matched the shareholder's stake as a percentage of the $50,000 monthly total Mr Biggar stipulated owners would receive.

In the company's audited financial report for 2022–23 Mr Biggar declared no dividends were paid.

Ms Hodgkins has spent months urging ASIC to investigate and is one of multiple former Zone RV employees summoned to give evidence under oath.

Ms Hodgkins was unable to discuss the interview, but said the investigation "has been a long time coming".

"I'm relieved and optimistic that authorities are finally doing due diligence and appropriate investigations," she said.

Expert welcomes probe

University of Sydney professor Jason Harris, an expert in corporate and insolvency law, said ASIC's decision to investigate Zone RV was "a very good development".

"There does appear to be at least some evidence of multiple breaches of the law here and ASIC as the corporate regulator absolutely should be taking action," he said.

Professor Harris said Zone RV customers had been left "high and dry".

"If enforcement action were taken earlier then there might have been more money left for creditors, including the customers," he said.

"ASIC absolutely should be bringing more of these cases … [they] shouldn't just be running cases against the big end of town."

Customers still out of pocket

Gold Coast couple Darren and Natasha Daley lost $160,000 in deposits for their van, which was never built.

Days before collecting their caravan they were returning from overseas when they heard the "gut-wrenching" news Zone RV had collapsed.

"We were in the shuttle bus on the way to the airport, we didn't want to believe it," Ms Daley said.

The couple had retired and planned to embark on a big lap of the country.

"We would probably be in the Northern Territory right now … Darwin, Kakadu or down at Uluru."

"We still hold hope that we'll be going again in the next couple of years."

Ms Daley said the ASIC investigation has been "a long time coming".

"We're glad they're taking action and they're not just the toothless tiger everyone says they are," she said.

"It'd definitely make it a lot sweeter for us hitting the road knowing it's all resolved."

Customers' best chance of recouping any money would require them to dip further into their pockets to pay the liquidator to sue Mr Biggar.

The ABC understands no creditors have provided funding, although a handful are considering pursuing private legal action against him.

Mr Biggar and his family left the Sunshine Coast on a yacht in February, spending time on Stradbroke Island before the boat's transponder was switched off.

He was later seen on the Gold Coast, while his boat was spotted in Bundaberg in May.

The maximum penalty for the offences ASIC is investigating is 15 years in prison and more than $1.4 million in fines.