A criminal charge against mining magnate Clive Palmer over a Sunshine Coast resort takeover has been dropped, and his spokesperson called the long-running case a political witch hunt.
The charge, which alleged Palmer aided a breach of the Corporations Act, was withdrawn by a Commonwealth prosecutor in a Brisbane magistrate's court on Monday. The same matter had already resulted in a guilty plea and fine for Palmer's company, Palmer Leisure Coolum, which pleaded guilty in June and was fined $10,000 on October 27.
The case centred on a proposed buyout of timeshare investors at the former Hyatt Regency Coolum golf resort, which Palmer Leisure Coolum took over in the early 2010s. The corporate watchdog alleged in 2018 that an offer for securities was not made within the required two-month period.
In a statement, a spokesperson for Palmer said: "These charges were a political witch hunt, a waste of time, and came at huge expense to Australian taxpayers."
Palmer remains in a separate legal battle with the Australian Securities and Investments Commission. In 2020, the watchdog charged him with fraud over a $12 million transfer between his company Mineralogy and the now-defunct Palmer United Party, which the commission alleges Palmer illegally authorised to fund the party's 2013 federal election campaign.
Analysis
Why This Matters
- Clive Palmer is a high-profile figure in Australian politics and mining; legal outcomes affecting him have broad public interest.
- The dropped charge closes a corporate enforcement action that has spanned almost a decade.
- Palmer continues to face serious fraud allegations from the same regulator, leaving active legal exposure.
Background
Clive Palmer is an Australian mining magnate and former federal politician. His company Palmer Leisure Coolum took over the Hyatt Regency Coolum resort in the early 2010s. The regulator's investigation into the timeshare buyout structure led to charges being laid in 2018.
What to Watch
- The outcome of the separate fraud case against Palmer over the $12 million election campaign transfer.
- Whether the regulator issues any public comment in the wake of the individual charge being dropped.
Checked
12 claims in this story checked against 1 source: 12 supported.
Show each claim
- SupportedPalmer’s spokesperson called the dropped charge a political witch hunt.Sydney Morning Herald - Latest News: “In a statement, a spokesperson for Palmer said: “These charges were a political witch hunt, a waste of time, and came at huge expense to Australian taxpayers.””
- SupportedA criminal charge against Clive Palmer over the resort takeover was dropped.Sydney Morning Herald - Latest News: “The charge alleging Clive Palmer breached takeover laws has been dropped.”
- SupportedA Commonwealth prosecutor withdrew the charge in a Brisbane magistrate’s court on Monday.Sydney Morning Herald - Latest News: “A Commonwealth prosecutor told a Brisbane magistrate on Monday it would not proceed with the charge against Palmer. The charge was withdrawn.”
- SupportedThe charge alleged Palmer aided a breach of the Corporations Act.Sydney Morning Herald - Latest News: “Palmer was charged with aiding and abetting a breach of the Corporations Act”
- SupportedPalmer’s company, Palmer Leisure Coolum, pleaded guilty in June and was fined $10,000 on October 27.Sydney Morning Herald - Latest News: “Palmer Leisure Coolum pleaded guilty in June and was fined $10,000 on October 27.”
- SupportedThe case concerned a proposed buyout of timeshare investors at the former Hyatt Regency Coolum golf resort.Sydney Morning Herald - Latest News: “Palmer was charged with aiding and abetting a breach of the Corporations Act after a proposed buyout of a group of timeshare investors making up part of the former Hyatt Regency Coolum golf resort”
- SupportedPalmer Leisure Coolum took over the resort in the early 2010s.Sydney Morning Herald - Latest News: “The mining magnate’s company Palmer Leisure Coolum took over the resort in the early 2010s”
- SupportedThe corporate watchdog alleged in 2018 that an offer for the securities was not made within the required two-month period.Sydney Morning Herald - Latest News: “But an offer for those securities was not made within the required two-month period, the corporate watchdog alleged in 2018.”
- SupportedThe spokesperson said: “These charges were a political witch hunt, a waste of time, and came at huge expense to Australian taxpayers.”Sydney Morning Herald - Latest News: “In a statement, a spokesperson for Palmer said: “These charges were a political witch hunt, a waste of time, and came at huge expense to Australian taxpayers.””
- SupportedPalmer faces a separate legal battle with ASIC involving fraud allegations.Sydney Morning Herald - Latest News: “The billionaire remains embroiled in a separate, long-running legal stoush with the corporate watchdog. In 2020, the Australian Securities and Investments Commission hit Palmer with multiple charges, including fraud”
- SupportedIn 2020, ASIC brought charges including fraud against Palmer over a $12 million transfer between Mineralogy and the now-defunct Palmer United Party.Sydney Morning Herald - Latest News: “In 2020, the Australian Securities and Investments Commission hit Palmer with multiple charges, including fraud, over a $12 million transfer between another of his companies, Mineralogy, and the now-defunct Palmer United Party.”
- SupportedThe commission alleges Palmer illegally authorised the transfer to fund the party’s 2013 federal election campaign.Sydney Morning Herald - Latest News: “The commission alleges in 2013 Palmer illegally authorised the transfer to fund his party’s federal election campaign in 2013.”