“Diamond” Joe Gutnick, who used to be ranked among the wealthiest men in Australia, supposedly with the personal support and advice of the Lubavitcher Rebbe, has declared bankruptcy, with debts of more than $275 million. The bankruptcy was the result of a deal he struck with Indian Farmers Fertilizer Cooperative (IFFCO), which, as The Sydney Morning Herald put it, “turned sour.”
Gutnik’s current wealth, according to the Herald, comes to $16,087 in savings, as well as a portfolio of shareholdings that’s mostly Indian manure.
According to a statement signed by Gutnick, he owes IFFCO $54 million. Gutnick also owes Westpac $4 million, American Express, Visa and Diners Club $520,000, and the Australian Tax Office at least $42,613.
Gutnick’s wife, Stera Gutnick, as a creditor, is owed $30.7 million. The Edensor Consultants Trust is owned $61.4 million. The Hoydu Family Trust is owed $40 million. A company called Class Productions is owed $16 million.
Gutnick also says he owes $33 million to N Sternberg of New York, and $13.3 million to Machne Israel of New York. The Machne Israel Development Fund was established in 1984 by the Lubavitcher Rebbe, to serve as a major financial resource of the Chabad-Lubavitch institutional network. Formed by a core of prominent Jewish philanthropists dedicated to the growth of Jewish life and the greater vision of Jewish continuity, The Machne Israel Development Fund has disbursed critical sums toward the support of Chabad-Lubavitch centers.
Now they’ll do with less.
The Herald reported a worldwide search for Gutnick’s assets, with special focus on his offshore holdings in America, Europe and Singapore.
