THE rogue Newcastle liquidator banned for life by a NSW court is facing pressure from a Senate inquiry into the industry to front a hearing that would put him face-to-face with many of his victims.

Photograph of Stuart Karim Ariff – as published by the Sydney Morning Herald – 1 April 2010

Stuart Ariff has been requested to appear before the Senate economics committee at its April 14 sitting in Newcastle. But Mr Ariff, who was given a life ban last year for failing to faithfully perform his duties in 16 liquidations, is expected to be reluctant to appear.

The Nationals senator John Williams, who initiated the inquiry, said the committee had the power to summons him and he could be found in contempt of the Senate if he did not appear.

”My advice to Stuart Ariff is that he should show up or he can be very confident the committee will take a stronger arm with him,” Senator Williams said.

The highest-profile liquidation Mr Ariff was involved in was Carlovers, in which he spent about $10 million on the administration of the company that had about $4.5 million owing.

”It’s just bloody outrageous,” Senator Williams said.

”Ariff’s taken his wife and kids overseas on money that he got from selling off assets for companies. There’s going to be a lot of questions put to Ariff, like where the hell has all the money gone now he’s bankrupt?”

As part of the administration of the company, Mr Ariff rode in limousines and went to luxury resorts.

Several people involved in companies liquidated by Mr Ariff have made submissions to the Senate inquiry. Among them was Bernard Wood, who employed 50 staff in an earthmoving business in the Hunter Valley. He claims he, his staff and creditors were subjected to ”pain and misery” by Mr Ariff.

Mr Wood claims Mr Ariff seized and sold the company’s assets, collected the debtors’ money and shared the spoils with a legal and auction company while leaving creditors without a cent and employees out of work.

”I became the victim of what I would call the sleazy world of liquidators and administrators and their associates,” he wrote.

This month the committee will have hearings in Adelaide, Sydney and possibly Melbourne. Its final report is due at the end of August.

by ARI SHARP – smh.com.au