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Pursuit of failed net czar a 'witch-hunt'

Daniel Tzvetkoff allegedly devised a money laundering scheme that illegally processed more than $US500 million

The father of failed internet entrepreneur Daniel Tzvetkoff has told the Federal Court his son has no money and liquidators are undertaking a witch-hunt.

A public examination is under way in Brisbane into the collapse of Tzvetkoff's BT Projects, which went into liquidation in July last year owing $180 million.

Tzvetkoff, 27, was arrested in Las Vegas in April this year for allegedly devising a money laundering scheme that illegally processed more than $US500 million ($A506 million) in transactions.

He was released from a New York prison in August and his whereabouts are unknown.

Liquidators for BT Projects on Tuesday investigated the sale of Tzvetkoff's Gold Coast home three months ago and two property deals he did with his parents.

They also want to know whether Tzvetkoff wore a Rolex or drove fancy cars.

Tzvetkoff's father, Kim, was summonsed to appear before the public examination on Tuesday.

He became agitated when counsel Paul McQuade, acting for BT's liquidators, asked about his son's financial position.

Mr Tzvetkoff raised his voice, saying: "This is turning into a witch-hunt."

He said he recently gave his son $80,000 to help with living expenses and legal costs while in the US.

He also said his family were forced to put up their two homes, in the western Brisbane suburb of Brookfield, as bail surety to US authorities.

"We offered everything we have, as anyone would do for their own son."

Questioned by counsel Paul McQuade, acting for BT's liquidators, Mr Tzvetkoff said he and his wife bought one of the properties with their son in 2005.

Mr Tzvetkoff said his son asked them to buy out his $100,000 share a year later, at a time when his businesses were going well.

Documents tendered to the court showed only $1 was transferred.

Mr Tzvetkoff said he was baffled by the document and that it was incorrect. "I don't know where this has come from," he told the court.

He said he put $100,000 into an account of one of his son's businesses in May 2006.

Later Grant Scott and his wife Luisa Nardi-Scott gave evidence, saying they bought Tzvetkoff's home on Hedges Avenue in Mermaid Beach on July 2 this year for $1 million.

Mr Scott said he knew he was getting a good deal and a quick sale was needed.

They wanted "a seven-day settlement", he said.

Ms Nardi-Scott said they were also aware at the time that Tzvetkoff was in financial difficulty.

The home is now listed on realestate.com.au for more than $1.6 million.

Tzvetkoff started the online payment business Intabill when he was 18 with his business partner Salvatore Sciacca.

BT Group traded as Intabill.

He faces 75 years in jail if convicted.

His trial in the US is scheduled for next year.

The public examination into BT Group was adjourned on Tuesday for a date yet to be fixed.

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More about: BT, BT Group

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