A hotelier businessman found to have misused funds in another business has been stripped of his licence to run pubs.
Ending a four-year civil dispute, the South Australian District Court ruled against Stephen Marks and his running of New Wave Aerospace (NWA), which operated Wirrina Cove marina. The suit was brought by 75 berth owners at the marina, over disrepair at the site.
Evidence before the Court suggested Marks had taken over $600k out of NWA over four years, transferring it to prop up two of his other companies.
His defence offered the excuse of ‘robbing Peter to pay Paul’ but the trial judge labelled the activity “inappropriate” a breach of contract. NWA was evicted from the site in March 2020, and ordered to pay more than $200k, which Marks says was payment for the arbitration report.
Marks has a history as licensee of hotels since 1997, including the Cathedral, Yankalilla and Union.
Following the District Court ruling, Police Commissioner launched an application to have him stripped of his Liquor Licence.
In a hearing before the South Australian Licensing Court, SA Police argued the District Court ruling was sufficient evidence to establish Marks was not ‘fit and proper’.
In his defence, Marks argued he had never been in financial trouble, such as bankruptcy or trading while insolvent, nor did he have criminal convictions or links to criminal organisations.
The Court also heard he has recently spent $1.75 million purchasing and renovating the long-closed Callington Hotel, about an hour south-east of the Adelaide CBD.
Judge Michael Burnett considered the earlier ruling of the District Court, and while acknowledging Marks had no outstanding debts or claims, concluded that “an honest person” would not have misused the marina owners’ money.
“That conduct provides strong evidence that Mr Marks is not a fit and proper person to hold a licence.”
The ruling puts doubt on the future of the Callington Hotel redevelopment, as Marks will not be allowed to operate it.
