A former director of the embattled 3 Property Group (3PG) has launched Federal Court proceedings, alleging he was coerced into taking on directorships and is now owed more than $669,000 in unpaid wages and sales commission.
Allegations of Coercion and Unpaid Dues
Paul Hamilton has filed an action under the Fair Work Act against his former bosses, Jaime Farrelly and Pamela Farrelly. He claims that in 2019, Jaime Farrelly told him 3PG could only pay substantial outstanding wages and commission if Hamilton agreed to become a director of several companies within the group.
Hamilton alleges he was effectively "fed the carrot" and pressured into accepting directorships of five separate 3PG companies between 2019 and 2021. These companies were: Lifestyle Home Account, 3 Property Group 13, Be Athletic Canberra, Tiger Property Group, and 3 Property Group 2. All five entities subsequently entered liquidation by 2021.
Despite the promotion, Hamilton claims his role was demeaned. He alleges he was forced to perform menial tasks like mowing lawns and managing calendars, with threats that his pay would be withheld if he refused.
A Life and Career 'Taking Quite a Hit'
Hamilton's lawyer, Andrew Chakrabarty from Adero Law, stated that while his client was "a victim of his own decision-making," that did not negate his right to be paid. The lawyer emphasised the alleged element of coercion as a key aggravating factor.
"The net effect of all of this is that Paul's entire life, personally and professionally, has taken quite a hit, which he should not have had to face had he just been paid his dues," Mr Chakrabarty said.
Hamilton, who worked as a property sales agent for 3PG after previous roles as a mortgage broker and car salesman, is seeking a total of $669,837.
Background of Corporate Collapse and Director Disqualification
The lawsuit adds another chapter to the troubled history of the 3 Property Group. The company faced significant controversy in 2021 when it rescinded off-the-plan contracts for dozens of buyers in its developments.
In 2023, the corporate regulator disqualified three 3PG directors, including Paul Hamilton, Jaime Farrelly, and Gary Kelly, from managing corporations until October 2025.
However, a separate ACT Supreme Court civil case in June 2024 found evidence of "ongoing involvement by Mr Farrelly with the operations of the company," despite the disqualification order.
Defendant Denies All Claims
Jaime Farrelly has formally rejected Hamilton's allegations. While stating he could not comment in detail while the matter is before the court, he told media the claims were untrue.
"I reject the characterisation of events alleged by Mr Hamilton, including any suggestion of coercion or the withholding of wages," Farrelly said. "Those claims are disputed and will be addressed through the court process, where all evidence can be properly tested."
The Federal Court will now determine the validity of the claims, which centre on fair work entitlements and the circumstances under which Hamilton assumed his directorships.
