Bill Lewski is being pursued for his $60 million Prime Trust management fee paid on an ‘oral agreement’

On Tuesday the founder of retirement village operator Prime Trust, Bill Lewski, explained in the Supreme Court he had a ‘temporary oral agreement’ through his company Retirement Guide, to 25 year management rights in Prime Trust villages. Retirement Guide received the rights for free and then sold them to Babcock & Brown Communities [now Lend Lease] for $60 million.

Lewski explained that the directors of the trustee, APCH, “discussed the matter” and inferred that was regarded as sufficient for him to have ownership of the rights. He then distributed $60 million via his wife as a gift to investment trusts in his son’s names.

However he manages those investment trusts. Liquidators KordaMentha are attempting to recover funds given the forecast $550 million losses Prime Trust is delivering mum and dad unit holders. Prior to Prime Trust Bill Lewski had a long association with Ted Sent who founded Primelife, which was subsequently bought by Babcock & Brown.