Blue Chip-style firm owes $600,000, Australian accounting firms claim

Mark Bryers says he is a consultant for Australian company Talos which has been accused of failing to honour debts.

An accounting business is taking legal action against a Blue Chip-style company in Australia which is closely involved with bankrupt former Blue Chip boss Mark Bryers.

Documents filed in the NSW District Court claim the company Bryers is associated with owes more than a quarter of a million Australian dollars for an accountancy firm it bought.

Bryers was banned from directing or managing companies here or in Australia following the collapse of Blue Chip property investment group in New Zealand in 2008 owing 2000 investors $84 million.

Weekend Herald inquiries indicate he has been a key administrator - using the name Mark Ryan - of the Australian-registered Talos group of companies which pitches property investments to clients of accountancy firms it acquires.

Vendors of two firms bought by Talos claim not to have been paid the full amount. Rick Mandelson claims to be owed about A$300,000 ($332,700) while court documents claim that FAM Developments is owed A$280,000 - the unpaid balance of the A$826,000 purchase price for Broadview Accounting Pty Ltd bought by Talos Accounting Group in December 2012, plus consultancy fees. FAM is also seeking costs and damages.

Talos has filed a cross-claim alleging the vendor breached the sale contract by approaching clients of the accountancy firm and "falsely billed clients for services that were not provided".

Philip Stroud, lawyer for FAM, said he believed the cross-claim had no merit, was "filed to delay the proceedings and in an attempt to frustrate our client's legitimate and strong claim against Talos." "No supporting particulars or evidence have been supplied in support of the allegations," he told the Weekend Herald.

Neither Bryers nor Stephen Lacy - who is listed as the sole director and shareholder of Talos - responded to requests for comment.

Earlier this month Mr Mandelson told the Herald that Talos paid an initial deposit for his accountancy firm, Rick Mandelson and Associates, but defaulted on the first instalment.

Talos had presented a property investment scheme to be pitched to the accounting firm's clients. According to a source, Talos aims to acquire 100 small accountancy firms, achieve a turnover of $300 million and launch on the Australian stock exchange in three years.

Australian authorities are investigating complaints that Talos group has not honoured debts and tax obligations.

Bryers, who is seeking to be discharged from bankruptcy, said in a statement this month that he had never been a shareholder or director and worked for the company "as a consultant via my employer".

He has told the High Court at Auckland, which is next month due to hear his application to be released from bankruptcy, that his employer was Australian company Forsite Marketing Pty Ltd. Official filings show that Forsite and Talos share offices and have the same listed director and shareholder, Stephen Lacy.