Froggy director Karl Suleman and wife Vivian have had their assets frozen, following an Australian Securtites and Investments Commission (ASIC) court order. ASIC chairman David Knott obtained the New South Wales Supreme Court's consent to freeze the couple's assets in relation to an unregistered investment scheme Suleman was allegedly promoting.
According to ASIC, the unregistered scheme commenced in early 2000 and may have raised as much as AU$60 million from up to 900 investors.
As a result of the court order, Karl Suleman Enterprises went into voluntary administration on 12 November.
However, confusion reigned at a meeting of predominantly Assyrian speaking creditors in Revesby last night. Administrators Paul Weston and Neil Cussen of Horwath Accountants, were faced with and group of up to 1800 people concerned about their investment.
-It was a little difficult to establish who were the creditors and who was just along to watch or translate," a spokesperson for Horwath said. -The mood was definitely in support of Suleman, many at the meeting seemed to feel that as long as we left the company alone they would get their money back."
By the end of the meeting, a group of seven representatives had been selected to represent the creditors, and the Horwath spokesperson said the company would use translators in an attempt to overcome cultural and linguistic barriers.
A spokesperson for Froggy ISP said that the company's operations would not be effected by the director's predicament.
-The companies are totally separate entities," the spokesperson said. -Froggy will continue to operate as usual."
However, a spokesperson for Horwath Accountants confirmed that investigations into the operations of Karl Suleman Enterprises would incorporate the maverick entrepreneur's other business interests, including Froggy.
According to the initial court order, the administrators are required to report back by Monday 26 November, providing details of a number of matters including the disbursement of any funds that have been raised.
This latest chapter in the life of Karl Suleman provides some indication as to how he has managed to sustain Froggy's massive advertising campaign, and his own jetset lifestyle on the meagre income of a fledgling ISP.
According to company records Suleman recently spent more than AU$4 million on two aircraft, including a lavish Cessna Citation 500 S/P Executive Jet, and reportedly picked up a Greg Norman's luxury cruiser -King" for a tidy $5 million. All this while ensuring Froggy maintained a high profile with extensive outdoor and television advertising.
