David Domingo walking from his Hope Island mansion to his Mercedes-Benz yesterday. Picture: Mike Batterham.

Members Alliance boss David Domingo was photographed walking from his million-dollar mansion to a Mercedes-Benz in an exclusive gated community on Hope Island yesterday before calling security on the Gold Coast Bulletin.

He did not return calls.

Members Alliance collapsed last month owing almost $30 million to the tax office, $741,000 in unpaid rent to the Gold Coast City Council, $7 million in superannuation to about 90 employees and $800,000 in entitlements to staff of a labour hire firm.

Mr Domingo, along with co-directors Richard Marlborough and Colin Macvicar, have been quiet since a News Corp Australia investigation this week exposed the trio at the centre of the cold-calling investment property group.

The company is suspected of duping investors into paying money for work on properties that was never carried out by resubmitting old progress payment forms.

INVESTIGATION

Investors caught up in the scheme were said to have little idea of what was going on until they were crippled by debt, having typically been sold unfinished properties thousands of kilometres away, mainly in rural Queensland and country NSW.

A law firm representing the men said they denied wrongdoing and “a mere suspicion of fraud should be taken to be unsubstantiated until it is supported by real evidence.”

Queensland police say they are investigating the matter on advice from the Queensland Building and Construction Commission.

The group is also under investigation by the national Phoenix Taskforce after 18 Members Alliance group companies went into voluntary liquidation in July.

News of the investigations came as an unknown person destroyed Mr Domingo’s front lawn by writing “prick” on the grass.

UNTOUCHABLES?

Regardless of numerous investigations and liquidations of Members Alliance group companies, the directors appear to be living the high life.

Property records show Mr Domingo owns the house he was spotted leaving yesterday.

Brad Catalans, 40, says he forked out upwards of $125,000 over two years for an investment property in Gympie and says he is outraged Mr Domingo is still driving a Mercedes and living in an expensive house.

“I’ve dealt with him personally on the phone,” he said.

“These pricks that own that company should … pay for it out of their own pockets to at least finish our houses.

“They shouldn’t be allowed to get involved in any enterprise like that again.”

Melbourne solicitor Scott Butler from McCullough and Roberts Lawyers says he is currently negotiating with eight victims of the Members Alliance cold call scheme but said there was a chance the directors including Mr Domingo would get away scot-free.

PAPER TRAIL

Despite the fact many mum-and-dad investors had lost their life savings, Mr Butler said many of the investors felt they would be throwing good money after bad by chasing Members Alliance for funds — much of which changed hands as long ago as 2014.

And depending on the nature of the phoenix activity — where a company deliberately liquidates to avoid taxes as well as paying employees and creditors — the McCullough and Robertson partner said there could also be difficulties around proving fraud.

“From what I’ve seen so far, they’re pretty well versed at using companies, getting the cash in and then dumping those companies and moving on to a new one,” he said.

“By the time somebody catches up with the company that was the one that effectively ‘ripped them off’ they’ve incorporated another company by then.

“They’re often unfortunately one step ahead of the people that are trying to do something about it.

“By the time the liquidator has moved in, they’ve moved the money out of that company and into a new one.

“We’re simply gathering information from (investors) to determine whether we can do something for them at the moment.”

‘NO MAJOR MISDEALING’

Worrells partner Jason Bettles has been appointed liquidator of 18 companies that were all part of the Members Alliance business and said while it was early in his investigation he had not found any major misdealing by the directors.

“The ASIC says that if you’re the director of two or more companies that go into liquidation in a seven-year period, then you flag on the ASIC’s database as a director that they want to look at,” he said.

“That doesn’t mean that Mr Domingo or any of the other directors fit into the category of people who are to be prosecuted but clearly there are more than two companies that have gone into liquidation in a seven-year period.”