ASIC launches Zone RV criminal investigation over caravan company's collapse

More than 100 customers collectively lost more than $10 million when Zone RV failed. (ABC Sunshine Coast: Josh Dye) ASIC has commenced an investigation into Zone RV after the luxury caravan manufacturer collapsed owing $42 million. The regulator is probing several alleged breaches of the Corporations Act after the liquidator's allegations. Customers remain millions of dollars out of pocket and ASIC is appealing for anyone with information to report it. Link copiedShareShare articleThe corporate regulator has launched a criminal investigation into a failed Queensland luxury caravan company amid fresh allegations the former director illegally paid dividends to shareholders. Zone RV collapsed in December owing $42 million to creditors before the Sunshine Coast business was wound up in January. More than 100 customers, many of them retirees, collectively paid millions of dollars in progress payments for caravans that were never built. These customers will not receive a cent from the liquidation process, the liquidator Cor Cordis confirmed. A new owner purchased Zone RV's assets in April to continue the brand but the majority of creditors were left empty-handed. A Cor Cordis report alleged Zone RV's founder and sole director David Biggar knowingly traded the company long after it was insolvent, accumulating huge financial losses. Mr Biggar's company relied on taking new customer deposits to repay debts before it collapsed, the liquidator said. (YouTube) After sustained public pressure ASIC has now opened a formal probe into the company's affairs. ASIC is investigating "suspected contraventions" of multiple sections of the Corporations Act, including criminal offences of a director acting recklessly or dishonestly, according to the letter ASIC sent to people required to give evidence. The letter states the investigation spans a period of more than four years from July 2021 to December 2025 when the company collapsed. Mr Biggar has not responded to repeated requests for comment since December. Mr Biggar's yacht was moored at Mooloolaba Marina in February before he left the region. (ABC Sunshine Coast: Owen Jacques) An ASIC spokesperson confirmed the watchdog's probe but declined to answer specific questions about it. "We understand these are difficult circumstances for creditors, including those who had paid for caravans that were not completed," the spokesperson said. The investigation hinges on when Zone RV became insolvent and whether Mr Biggar acted dishonestly by incurring more debts when the company was failing. The company's former chief financial officer Kim Hodgkins warned senior management in late 2023 that the company was insolvent, according to emails seen by the ABC. "As previously discussed, our current [cash] position is we have $527,000," Ms Hodgkins wrote. "We have $2.1 million of payments that are currently overdue." Zone RV whistleblower Kim Hodgkins said the saga has had a major negative impact on her life. (ABC Canberra: Timothy Sweeney) Ms Hodgkins was forced out of Zone RV after escalating her financial concerns to shareholders, according to her subsequent WorkCover claim. In November 2023, Mr Biggar left a voicemail for Ms Hodgkins after directing her to take leave. "Please just stop all comms … Please don't worry about what we've got going on here," it said. "I've got [accountants] BDO coming in to give me an understanding of where we're at exactly and what we've got to do to move forward, and what finances I've got to put on the table to get this cashflow sorted." Ms Hodgkins told the ABC the phone message proved Mr Biggar was aware of Zone RV's financial woes that she repeatedly warned him about. Her subsequent worker's compensation bullying claim was upheld, with WorkCover finding she was unfairly treated as retaliation for raising concerns. "The longer these matters are drawn out, it makes it very difficult to put this part of my life behind me and move on," she said. "My life really is quite different from what it was [in 2023]. "I'm not remotely the same person that I was, it's been difficult on my relationships. "Unfortunately it's impacted all areas of my life — not in a good way." Ms Hodgkins has not been able to work since then. Another aspect of the investigation is whether Zone RV unlawfully paid dividends to its shareholders, despite the company's liabilities allegedly exceeding its assets. The liquidator identified $27.5 million in potential claims against Mr Biggar, including the alleged dividends which are among $4 million worth of "unreasonable director-related transactions". The liquidator's report said Zone RV paid dividends despite generating losses and "processing those distributions via shareholder accounts-payable invoices, which masked the nature of the payments". Ms Hodgkins told the ABC Mr Biggar authorised monthly payments to shareholders by hiding the transfers as consulting services. The payments were made in the same perce

ASIC launches Zone RV criminal investigation over caravan company's collapse

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ASIC launches Zone RV criminal investigation over caravan company's collapse

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