Bankrupt Geoffrey Edelsten still leading life of luxury thanks to his mum
- From: The Courier-Mail
- September 13, 2014
Geoffrey Edelsten and girlfriend Gabi Grecko. Picture: Getty Source: Supplied
DESPITE filing for bankruptcy in the US, Geoffrey Edelsten continues to live a life of luxury – and he says it is all being financed by his mum.
Mr Edelsten, 71, has spent $1.5 million in the past eight months on personal and business expenses including first-class flights overseas, stays in luxury hotels and designer clothes.
But Mr Edelsten told The Courier-Mail his lifestyle is being maintained by his 91-year-old mum Esther, who lives in a retirement home, and some generous friends.
He said he had made sacrifices to cut back on spending including giving up his Mercedes-Benz and private jet.
“I didn’t pay for these expenses they were paid for by mother and other people close to me,’’ he said. “My mother has contributed a lot of money, she didn’t like seeing me being sad.
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“I will work very hard to see every dollar she has contributed will get repaid.’’
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Mr Edelsten had to declare every dollar he has spent over the past nine months to the US bankruptcy court in the Southern District of Florida on September 5, as part of his chapter 11 bankruptcy protection.
He has handed over his credit card bills, obtained by The Courier-Mail, which provide an insight into his spending sprees at the world’s priciest hotels and retailers.
He has spent $73,000 on hotels including the Beverly Wilshire Hotel, the Plaza Athenee Hotel in New York, and lavished $44,215 on clothes for his then-wife Brynne and new squeeze Gabi Grecko, 25, at high-end retailers such as Louis Vuitton.
He has also paid $360 in fees to the dating website Sugar Daddy For Me, and consulted twice urologist Christopher Love, who claims to be “Australia’s foremost penile implant surgeon”.
He filed for protection from creditors in January during a bitter legal wrangle with his former business partners in a casino and fashion business, the Mawardi family.
Mr Edelsten said he was not down to his last dollar but admitted he owed millions to the Australian Taxation Office, thousands to the Etihad Stadium for a corporate box at the footy, and $8000 to a Gold Coast real estate agent.
“I expect if the bankruptcy trustee does his job all of them will be paid,” he said.
He said he had returned his leased car to Mercedes- Benz last week to help slash his bills, but a kind “friend” loaned him a similar model.
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Only two years ago Mr Edelsten boasted he was worth $64 million, with the majority of his wealth held in the secretive Norman South Trust.
But on September 3 his US bankruptcy trustee moved to seize control over his Australian assets – of which he claims he has very few.
The Trust owns an apartment at the Palazzo Versace on the Gold Coast, a Sydney luxury apartment worth $1.2 million and a factory in Melbourne – but it could be out of the reach of his creditors. Mr Edelsten has transferred control of the trust to two friends.
The Mawardi family lawyers have told the court they believe these “friends” are paying his bills.
Geoffrey Edelsten lived an opulent lifestyle with ex-wife Brynne. Picture: Luke Marsden
Mr Edelsten claims his US assets include a share of a casino in the Dominican Republic – supposedly worth $2.5 million, an adjacent hotel and beachfront land, commercial properties in Florida and $2 million from the sale of his private jet. It is not known what has happened to a fleet of 25 cars Mr Edelsten boasted he owned two years ago.
The Mawardi family believe Mr Edelsten still owns some luxury cars, but he says they are mistaken.
He is due to appear in the US Bankruptcy Court in the Southern District of Florida next month to answer accusations that he committed criminal contempt of court by placing a caveat on his luxury Melbourne apartment. Mr Edelsten doesn’t deny taking out the caveat in July but said he withdrew it days later.
* * * * * *
EDELSTEN’S CREDIT CARD SPENDING
* Legal fees total, January-August 2014: $553,835
* Flights/travel total, July 2013-May 2014: $144,447 – mostly business-class flights to the US with Qantas, Singapore Airlines, Etihad, American Airlines, Virgin, US Airways
* Hotels total, July 2013-May 2014: $73,439 – includes $15,630 spent at Beverly Wilshire Hotel, Beverly Hills, on February 9, 2014, and $9429 spent at Beverly Wilshire Hotel, Beverly Hills on April 4, 2014, also stayed at Plaza Athenee Hotel in New York, and Westin Beach Resort in Fort Lauderdale
* Fashion total, July 2013-May 2014: $44,215 – includes $12,711 at Tom Ford in Beverly Hills in April 2014, $7,900 at Louis Vuitton in Melbourne in August 2014, $4,041 at BCBG MaxAzria in Beverly Hills in January 2014, $3809 at BCBG MaxAzria in Aventura Florid in September 2013. Also shopped at Chanel in New York, Yves Saint Laurent (Beverly Hills) and Prada (Beverly Hills), Victoria Secret, La Perla and Mimco
* Restaurants total, July 2013-May 2014: $37,659 – includes $24,000 at Sandringham Yacht Club in December 2013 and $4571 at Barneys New York restaurant in April 2014, dinner at celebrity chef Wolfgang Puck’s restaurant “Cut” within Beverly Wilshire
* Parking total, July 2013-May 2014: $29,941
* Entertainment total, July 2013-May 2014,$18,000 (AFL corporate box at Etihad Stadium, Carlton Football Club, Gold Class movies, Ticketek, magazines, website subscriptions), April 2014 paid $6154 to Carlton Football Club,
* Paid $41.91 to Cyprus-based dating website Lonely Hearts Meet.com in October 2013 and $40 to Cyprus based dating website Cougarlife.com in October 2013 and again in November 2013, monthly subscription to Sugar Daddy For Me website costs $59/month
* Beauty total, July 2013-May 2014: $8953 – includes $1550 for treatments at Adore spa in Beverly Hills in February 2014.
* Hairdressing at Telleish Hair Studio, Port Melbourne cost $1375 in November 2013 – includes online beauty/anti-ageing treatments and day spa treatments
* Healthtotal, July 2013- August 2014: $21,500 – urologist, eye surgeon, dentist, cardiologist, psychiatrist, pharmacy
* Dentist, $19,800 in October 2013
* Dr Christopher Love, urologist and penile implant surgeon $100 in August 2013 and $100 in March 2014
ASSETS: WHAT HAS GONE
* Mercedes-Benz CL65 (2007 model) was leased and returned to Mercedes-Benz last week. A friend has given him a Mercedes SL350 (2007 model) to drive instead
* Sunseeker Predator (68-ft) motor boat, bought for $2.97m in Ma7 2007
* private jet - a Challenger 601-3A - worth $4 million - has been sold (it was owned by Edelsten’s US company N770GE LLC)
WHAT THE NORMAN SOUTH TRUST OWNS
* Apartment where Edelsten lives, at 181 Exhibition St, Melbourne
* Sydney apartment at Quay West building (rented out short term)
* House in Macquarie Fields, NSW
* Apartment in Palazzo Versace, Gold Coast.
EDELSTEN’S TRAVELS
August 2013 – Los Angeles/Las Vegas and Jakarta
September 2013 – Florida
November 2013 – Dallas/Fort Worth
January 2014 – Florida/Ohio/Los Angeles
February 2014 – Los Angeles/Ohio
March 2014 – Los Angeles/Ohio
April 2014 – Los Angeles/New York/Las Vegas
