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Intermedia Linked Business Under Investigation In Federal Court Hearing

Big Un Limited the collapsed Company that was linked with Appliance retailer publisher Intermedia is back in the news after a Federal Court hearing into the collapse gets under way, the business also operated Big Un TV.

Despite repeated statements in Big Un annual reports, investor briefings, press releases to media organisations and a video on YouTube indicating that a JV was done between Big Un, Intermedia, solicitors acting for the media Company have claimed that Intermedia never proceeded with any joint venture officially with Big Un Limited.

Simeon Grover right CEO of The Intermedia Group signs a deal with Big Un Brandon Evertz Director of Big Un.

Back in October 2014, Big Review TV was due to list on the ASX through a reverse takeover of Republic Gold that would be renamed Big Un and would be the holding company of Big Review TV.

Big Review TV and its ASX listed parent Big Un collapsed in 2018 after a secret financing model involving Sydney-based lender FC Capital was exposed. It was also after the Company bragged about their relationship with Intermedia.

Currently under investigation is a highly controversial arrangement between Big Un and Sydney-based financier FC Capital with further questioning of executives set to go ahead this week.

During a near three-hour virtual examination in the Federal Court Andy Corner, who served as CFO until the firm collapsed in April 2018, was asked repeatedly why internal weekly reports tracking the conversion of customer prospects to sales lagged the number of invoices financed by First Class Capital, resulting in a growing liability to the firm.

“The structure was that FC Capital would sponsor contracts, but the reality is the number being sponsored were so vastly in excess of the contracts entered into, the reality seems to be a funding arrangement?” the liquidator’s counsel Ben Katekar SC asked Mr Corner.

Back in 2018 Big Un found themselves under investigation by the Australian Companies and Securities Commission after a claimed deal with Intermedia to buy several of their publications and serious questions about the operations of the business which at the time had become a high flying ASX stock.

Big Un, and the contracts it claimed to have signed with Intermedia along with Big Un statements made in prior Company reports and filings to the ASX have been investigated by the ASX for some time.

Picture Shows Brandon Evertz a director at Big Un on the day that Big Un was listed on Wall Street.

There is no suggestion of any wrongdoing on the part of Intermedia or its offices.

When Big Un listed, its CEO Brandon Evertz was the youngest boss of any ASX-listed company.

His father Richard Evertz, who was also a director, is a convicted criminal who served time in a Victorian jail and ended up involved with the Company.

Currently investigators are trying to find former executives of the Company.

At the close of the previous court session on Thursday, Mr Katekar had asked Mr Corner if he had the contact details of Brandon Evertz, Ms Thurston, Hugh Massie and Tim Dewhurt, a consultant involved in the business.

“We are having difficulty serving them,” Mr Katekar explained.

The liquidator’s counsel Ben Katekar SC asked during Friday’s hearing whether Mr Corner had “pause to reflect” whether it was in the interests of Big Review TV, the operating subsidiary of Big Un, to continue the financing arrangement which attracted a fee of $75 per $399 sale and left the company on the hook if there was a default.

Mr Corner agreed there was a lag period but said he did not recall whether he had concerns at the time. He added the sales team had relocated during early 2016, the period in question, which may have adversely affected sales.

Big Un collapsed in early 2018 after it was revealed that a highly controversial financial arrangement with FC Capital was central to the growth in sales and cash receipts as the financier was effectively advancing funds to Big Review for sales of its video service, often before the customer agreed to proceed.

Big Review could substitute in another client if a customer declined the service and was on the hook to FC Capital if there was a non-payment.

Once this arrangement came to light, the company was forced to reclassify cash receipts that showed up as revenue as debt financing, swinging the company to an irrecoverable loss.

Mr Corner resigned as a chairman of Big Un in May 2016, and also departed the board.

The board of Big Un consisted of Mr Massie, Brendon Evertz, the son of chief executive Richard Evertz, and Sonia Thurston. Brandon Evertz and Sonia Thurston were the directors of Big Review TV that entered into the arrangement with FC Capital.

While Mr Corner was no longer on the board of Big Un in May 2016 he was asked if, in his role as chief financial officer, “he was concerned to ensure that Big Review TV was solvent?”

“We are obviously aware we were burning cash and were monitoring how we could move to a position where we weren’t burning cash… profitability is a different topic.”

The hearing is set to continue today.



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