MFS's Michael King taking fight to highest court, billionaire Fung backing him
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Michael King in 2007 during the property boom that made MFS. Michele Mossop
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by
Matthew Cranston
Michael King, the former MFS chief executive who has been ordered to pay $177 million in compensation to a managed investment scheme, has been kept on by billionaire Tony Fung to advise on more than $100 million in property holdings in Queensland and says he will fight the recent decision all the way to the highest court in the land.
In Queensland's Supreme Court last Friday, judge James Douglas found
Mr King along with three other MFS executives to have "flagrantly ignored" laws and to personally owe a combined $620 million to about 10,000 ordinary investors in MFS's Premium Income Fund.
Mr King, who was also banned from managing corporations for 20 years and ordered to pay $300,000, said he would fight the ruling.
"This has a very long way to run," Mr King told
The Australian Financial Review. "I will take this to the highest court in the country."
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Hong Kong billionaire Tony Fung has more than $100 million in property holdings in Queensland.
He believes he also has support to keep working in the property industry in Queensland with an advisory role to Hong Kong billionaire Fung.
"As of today I am still doing advisory work for Tony Fung when and where I am able to, and when I can add value to the process," Mr King said.
Mr King has helped Mr Fung purchase about $100 million in property mainly on the Gold Coast, including the former MFS-owned properties that were sold to Nathan Tinkler, which became part of Patinack Farms.
Defending selection process
An Aquis spokesman defended Mr Fung's selection process for advisers and friends on Monday.
"Mr Fung will use who he wants when he wants as advisers," the spokesman said.
"[Mr Fung] will keep who he chooses as family friends to himself."
Mr Fung, who also owns the Canberra Casino, teamed up with Chinese developer Tandellen and CCCC International Holding – the government-owned company that recently bought John Holland – to buy a development site at Surfers Paradise last year for $40 million.
Mr Fung signed a contract to buy the 11,800-square-metre site, currently owned by Orix, with Mr King's involvement in the deal.
The billionaire has been keen to build a multibillion-dollar casino and resort development near Cairns but has since soured on those plans.
He has made several high-profile purchases on the Gold Coast including a development site at Robina for $45 million, another property at 109 The Esplanade, Surfers Paradise, for about $55 million, a penthouse in Surfers Paradise for $7 million and Nathan Tinkler's Patinack Farms for about $15.8 million.
At one stage he was also in due diligence to buy the Sheraton Mirage on the Gold Coast for $160 million but that deal did not progress.
