Lion Property Group collapse: liquidators uncover $25m shifted to director-linked entities

More than $25 million was shifted outside Lion Property Group before its collapse — with the money moved to external “related party” entities tied to its directors — an explosive report has found.

Liquidators KPMG have identified $25.29 million of funds from the group, which collapsed owing around 600 investors $122.5 million, that have been removed before their appointment.

“The related party transfers relate to payments made to entities outside of the Group with similar directors to Group entities,” writes liquidator Sarah Emily Seeckts.

In a report to creditors, KPMG has identified a wide range of serious alleged legal breaches by Lion’s directors, Garry Pesochinsky and John Sader, who, as revealed by Australian Property Investor Magazine, was previously named John Brunton.

The alleged illegality includes “misleading or deceptive conduct”; “unconscionable conduct”; “dishonest conduct”; and of improperly using a position to “gain advantages for themselves or another”.

The liquidators have also identified likely “uncommercial transactions’ involving the two directors, as well as “voidable transactions”.

Voidable transactions are those that “may be deemed to be insolvent transactions with a related party” entered into “within four years of the commencement of a winding up”.

Forensic investigations by KPMG have identified 14 “related party” entities (outside the Lion Property Group entities that were initially put in liquidation) where Lion funds were shifted before the collapse.

One of the entities, “LPG Property Developments”, received $6.89 million in net cash payments from Lion Property Group, the report states.

Another external entity, FCFS, which is currently deregistered, received net cash payments of $5.02 million. 

Of the $25.29 million of shifted funds, $4.01 million was moved to an entity called “LPG Capital Advisory”, and a further $3.04 million in net cash payments went to an entity called “Lion Private Equity”, the report states.

More than $6 million has also been moved to five entities, since deregistered, that were part of the unsuccessful property development group Mr Pesochinsky and Mr Sader ran before creating Lion Property Group in 2018.

The KPMG report states that a further $816,071 in net cash payments had gone to Mr Pesochinsky and Mr Sader themselves.

“At the time of my appointment the Group held 20 bank accounts with the National Australia Bank, which held a combined balance of $3,084,” writes Ms Seeckts.

Police, ASIC looking into the group

The explosive findings come as KPMG has reiterated it is “unfunded”, and so hamstrung as to the extent of the investigations it can undertake. Corporate regulator the Australian Securities and Investments Commission (ASIC) and police remain tight-lipped about what action they are taking.

As previously revealed by API Magazine, ASIC launched a formal investigation into Lion in October, but it is refusing to comment further.

More than four months ago a confidential provisional liquidator's report from KPMG, which allegedly detailed more serious alleged wrongdoing by Mr Pesochinsky and Mr Sader, was handed to Victoria Police.

Victoria Police has said the matter is “currently under assessment by the Financial Crime Squad but is refusing to comment further.

When asked by API Magazine whether this meant the Lion matter was being investigated, or whether it meant it was being considered for possible investigation, Victoria Police did not respond.

The allegations against Mr Sader and Mr Pesochinsky are extremely serious, and are substantially beyond those typically associated with corporate collapses of the size of Lion’s.

Neither Mr Sader nor Mr Pesochinsky has been charged with any offence. Neither man responded to requests for comment.

Lion spruiked 18 property developments in Melbourne, Brisbane and the Gold Coast, citing “targeted returns” as high as 65 per cent over three years.

The developments were tied to individual “special purpose vehicles”, with Lion Property Group charging management fees.

As exclusively revealed by API magazine in May, investors were forced to take action themselves to have Lion Property Group wound-up, after ASIC refused to act.

The KPMG liquidator’s report, filed with ASIC on 6 November, states there had been “material co-mingling of funds within the group’s entities”.

Specifically, cash had been moved between bank accounts tied to the special purpose vehicles (SPVs) and central group entity LPG.

Chequered Lion history

Ms Seeckts said she had obtained court orders for the production of documents related to ten of the related parties entities outside Lion Property Group, where funds had been shifted.

“These orders are in the process of being served on the entities following a hearing held on 24 October 2025,” Ms Seeckts writes.

Mr Sader’s LinkedIn profile states he was a “life coach”, “leadership coach”, a “meta dynamics practitioner” and “hypnotherapist”, from 2014 to 2017, while working under the name Mind Dynamics Consulting.

ASIC records show Mr Sader was previously named John Brunton, although they do not state when his name was changed.

Before creating Lion, Mr Pesochinsky and Mr Sader ran a property development group called Investments Squared, which appears to have been severely financially troubled.

According to KPMG, the men created Lion from the assets of Investments Squared, which raised around $30 million from investors.

KPMG’s liquidator’s report states $6.33m was shifted from Lion Property Group to five of those former companies, including to entities called “Syndicate 2 Squared”, “Syndicate 3 Squared” and “Syndicate 4 Squared”.

Each of the five entities is deregistered.