Former Virtical director denies gold bullion purchase amid liquidation proceedings
Mark Toma, the former director of the now-collapsed hospitality group Virtical, has faced questioning in Federal Court proceedings about the alleged purchase of $5 million in gold bullion. The inquiry comes as liquidators seek to recover tens of millions of dollars tied to purported fraudulent GST refunds.
The court session focused on the financial activities of Virtical, which fell into liquidation following an Australian Tax Office investigation into claims of up to $100 million in GST refunds and demands for $90 million in outstanding loans.
During questioning, Toma was specifically asked about his potential presence at ABC Bullion in Martin Place, where the $5 million gold purchase was said to have occurred. Toma denied attending the location in a Range Rover, as had been alleged.
In what was described as an unusual exchange, Toma acknowledged knowing who had conducted the transaction at ABC Bullion on behalf of his company, Bond Global Capital, but did not disclose the individual's identity. The liquidator, BRI Ferrier, is pursuing the recovery of assets linked to the group's alleged financial misconduct.
“Who was that person?” ERA Legal partner Blake O’Neill asked.
“No one did,” replied Toma.
“Your answer is that gold was purchased, but no one purchased it?” O’Neill asked.
Toma replied: “My answer is your question is not entirely correct.”
Founded in 2021 by the ex-building materials salesman, the company rapidly expanded its portfolio in 2023, acquiring iconic pubs like Sydney’s Republic Hotel and Melbourne’s Adelphi Hotel, and securing a $61 million deal for Oxford Street establishments.
However, reports from the Australian Financial Review allege that Virtical and its subsidiaries claimed tens of millions in GST refunds for non-existent construction work.
These claims are reportedly linked to invoices totalling up to $1.5 billion from Top Class Constructions, a firm directed by Toma from 2017 to 2023.
John Palasty, who assumed the director role from Toma in November 2023 after serving as the group's development manager and senior advisor, was scheduled to provide evidence on Friday. When questioned about Virtical’s operations on Thursday, Toma described it as a development-focused brand.
“And what did it develop?” O’Neill asked.
“I don’t remember,” Toma replied.
Toma attributed recent memory lapses to stress, anxiety, and sleep deprivation, stating, "Physically I can’t function normally as I’m going through a lot." This followed questioning from O’Neill regarding inconsistencies in Toma's recall.
The court also heard details surrounding Toma's post-Virtical activities, specifically his involvement with Bond Global Capital. The firm had previously touted Toma's $45 million profit from the sale of his Virtical shares, labeling him a "financial luminary" and highlighting his "astute investments" in real estate. However, under oath, Toma clarified that the sale price was ultimately negotiated down to $25 million, with his final earnings ranging between $9 million and $10 million.
Further scrutiny revealed Toma's lack of a loan ledger, a search for an accountant, and the absence of financial statements for his lending activities. When asked about contact details for borrowers beyond loan documents, Toma responded, "I don’t have an answer to that question."
Toma is scheduled to reappear in court for further examinations. Both he and Palasty are currently subject to a $52 million asset freeze imposed by the court.
Jonathan Jackson, 1st April 2025
