Former Medical Entrepreneur Geoffrey Edelsten Lives in Luxury Despite Bankruptcy

by San Antonio Attorney

Geoffrey Edelsten’s bankruptcy has not prevented him from living a luxurious lifestyle. He is still spending around $48,000 monthly on five-star hotels, business class flights, and expensive jewelry for his female friends.

There is a speculation that Edelsten is using up a secret Australian trust account even though his bankruptcy filing in the United States has triggered a motion to have him also made bankrupt in Australia to conserve his assets.

When Edelsten filed for bankruptcy, he claimed to have only $90 in cash. But he has been spending a lot of money including $1,500 in a beauty spa, $7,000 for AFL corporate packages, and employing an international PR firm to help revamp his reputation.

The deregistered medical entrepreneur owes more than $8 million to the Australian Taxation Office for personal and business dues. Accountability for assets and liabilities worth tens of millions of dollars is in dispute with Mawardi family, his former business partners in the United States.

The independent trustee assigned to watch over Edelsten’s estate has requested a US court’s approval to make Edelsten insolvent in Australia and then sell off his sizeable holdings to repay creditors.

The 71-year-old former doctor is also confronting a contempt charge over claims that he has set up a plan to embezzle huge amounts of money in real estate from his insolvent estate.

Control of the trust has been transferred to Edelsten’s friends and business associates even though a US court has ordered that he should not do it. Documents reveal that since the transfer, they have spent around $3 million for Edelsten’s mortgages on a penthouse in Melbourne without getting permission from the court.

Edelsten’s spending habit has become renowned after he spent $63 million in two years prior to filing bankruptcy this year.

According to him, the credit card bills were old debts and most of them were business expenses. He also said the recent contempt motion filed against him was unfounded.

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