Steve Goodey wins $396,000 judgement against Phil Jones
Property seminar provider Steve Goodey has won a $396,000 High Court judgement against fellow property guru Phil Jones of Richmastery fame but he may have difficulty collecting.
Friday, July 13th 2012, 12:00AM 2 Comments
by Jenny Ruth
Justice Patricia Courtney in the Auckland High Court awarded Goodey the money for breaches of contract in failing to ensure Goodey was paid money owed him by Jones-controlled companies.
In May 2009, shortly after Jones incorporated Property Teachers NZ Goodey began working for that company as a contractor in marketing and presenting a montoring program called the Millionaire Mastery VIP Programme. Goodey's and Jones' client databases were consolidated and Jones promised to pay Goodey 60% of the profits from the mentoring program.
At the end of 2009, Goodey became chief executive of Property Teachers and was promised 50% of its profits in addition to his 60% of the mentoring program's profits. Some of the money owed was paid but most was not, Justice Courtney said in her judgement. By the end of 2010, Property Teachers was insolvent “and there is evidence that most of its revenue was diverted to meet Mr Jones' personal expenses,” Justice Courtney said. Jones failed to provide documents despite court orders for discovery made in May last year.
The 395,782.22 judgement will accrue 5% interest from May 4, 2010. Goodey was also awarded costs. “Judgement is one thing, collection is most certainly a separate issue,” Goodey told Landlords. Jones moved to the US in September 2008 and Goodey says he understands his former colleague is still resident there. “I understand he's actually partying it up in Las Vegas this weekend.” Goodey says he doesn't have proof that Jones still has assets in New Zealand but that he is starting liquidation proceedings against Jones in both New Zealand and the US.
“He has a track record for not settling these types of disputes – of which I understand there are many – until the very last minute,” Goodey says.
However, pursuing the case against Jones “wasn't really about collection … you can't get away with this stuff. It's just not right. It destroys the trust people put in us when they give us money to provide a service. It was time somebody took him down a notch,” he says. “He took the money and left me servicing the clients.” Richmastery went into liquidation in mid-2009 owing creditors more than $75,000.
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Oh GOODEY... someone actually managed to get another judgement to reclaim some money from Mr Jones. (about time) Although I am surprised that (Steve) took so long to realise what ( his ex best pal) Jones was really like. Considering he must have known that almost everyone who has ever been involved with him (Kones) gets taken down (it personally cost me $millions, an unfairly damaged reputation and bankruptcy- just for foolishly being a Richmastery franchisee) But why oh why he (Steve Goodey) though it WOOD never happen to him is beyond me.(Perhaps he believed there is honour amongst thieves?) And now it seems that Jones has LEFTUS to hide out in the good ole cowboy country of the USA. Hmmm... I'm sure there is something in COMMON about stories like this.
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There will be a lot of very very happy people that have been on the receiving end of Mr. Jones business practices over the past decade that will celebrate his being held to account. Good on you Steve Goodey - thanks for following this through on behalf of all the people that wanted to but couldn't. I will buy you a beer, if I meet you one day!