ACCC institutes contempt of court proceedings against Bon Levi

The Australian Competition and Consumer Commission has instituted proceedings in the Federal Court of Australia against Mr Bon Levi for contempt of court. 

The ACCC alleges that Mr Levi has breached orders made against him by Justice Kiefel in the Federal Court on 28 February 2005. 

The orders restrain Mr Levi from selling business opportunities unless he either (i) has run the business successfully for at least six months, or (ii) provides a copy of the orders and certain information about his business experience and aliases to the purchaser. 

The ACCC claims that between December 2005 and September 2006 Mr Levi sold five business opportunities to people located in Sydney, Melbourne and Perth without complying with the orders. The business opportunities involved photographic, gas conversion, and 'Little Joe's' snack food distribution businesses.

The ACCC alleges that Mr Levi was paid over $100,000 for these businesses, which did not come to fruition.

In a directions hearing today, Justice Dowsett ordered, on Mr Levi's application that the matter be transferred to Perth. The next hearing in Perth is scheduled for 10.15am on 10 August 2007.

The ACCC is seeking orders that Mr Levi be committed to prison or fined for contempt of Court. The ACCC is also seeking an order for costs against Mr Levi.

Background

On 28 February 2005, the Federal Court of Australia declared that Mr Levi had breached the Trade Practices Act 1974 in respect of the promotion of the 'Little Joe' and 'Joey's' franchises, including distributorships to deliver snack foods, cookies and fruit juices.  Mr Levi consented to declarations that he had engaged in misleading or deceptive conduct and breaches of the Franchising Code of Conduct.  Mr Levi also consented to an order to pay $40,000 to the ACCC in costs.

On 27 September 2006, the Federal Magistrates Court of Australia declared Mr Levi bankrupt after he failed to pay the ACCC $38,000 in costs pursuant to the Federal Court orders.

Aliases previously used by Mr Levi include: Ronald Frederick Heelan, Ronald Frederick, Roddy Farrow, Brett Wyatt and Ronald White.

Related news releases:
MR227/06, 29 September 2006, Court declares Bon Levi bankrupt; MR150/04, 6 August 2004, ACCC takes court action against Bon Levi over the sale of Little Joe and Joey's businesses; MR057/105, 14 March 2005, Court declares Bon Levi misled franchisees over 'Little' Joe and Joey's businesses.