A private lender is moving to bankrupt convicted conman Ricky Hirsch after the Supreme Court dismissed his appeal against a $550,000 debt. The lender, who cannot be named for legal reasons, had lent Hirsch the money in 2018 for a property development that never materialised.
Failed Appeal
Hirsch, who has a history of fraud convictions, argued that the loan was unenforceable due to his mental state at the time. However, the Court of Appeal unanimously rejected his arguments, upholding the original judgment. The lender's lawyer stated that bankruptcy proceedings would now commence.
Background of the Case
The loan was made to Hirsch's company, which was meant to develop a block of units in Perth. When the project failed, the lender sought repayment. Hirsch claimed he was suffering from a mental impairment and did not understand the loan agreement. The court found no evidence to support this claim.
Hirsch has a notorious past, including a 2015 conviction for defrauding investors in a gold mining scheme. He was sentenced to prison but released early. This latest legal battle adds to his financial woes.
Implications for the Lender
The lender, a private individual, has spent years trying to recover the money. The appeal dismissal clears the way for bankruptcy action, which could force Hirsch to sell assets to pay the debt. The lender expressed relief at the outcome but noted the emotional toll of the prolonged litigation.
Legal experts say the case highlights the risks of private lending, especially when borrowers have a criminal history. They advise lenders to conduct thorough due diligence before advancing funds.
