Lleyton Hewitt invested hundreds of thousands of dollars offshore and took up to $2 million a year from his bank account as personal expenses, the Victorian Supreme Court has heard.
This legal battle is over the handling of his finances, Octagon claims that Lleyton Hewitt was taking this $2 million per year in personal expenses compared to just $5000 in business expenses for that year.While Lleyton Hewitt claims that his then management team failed to make him enough money.
Mr North said, according to documents before the court, it appeared Mr Hewitt and his father Glynn Hewitt were complaining their investments had not reaped the same results seen on the New York Stock Exchange, including some in entities which had since tanked.
“Mr (Lleyton) Hewitt seems to be suggesting in his hypothetical loss basis, he would have been investing in Lehman Brothers,” Mr North said.
Lehman crashed into bankruptcy last year, helping spur on the US credit crunch and subsequent global financial crisis.
Mr North said Hewitt had been inexplicably vague in stating what he actually wanted from his investment program through Octagon.
Hewitt’s lawyer, Timothy Walker, said the tennis champion was counter-suing for “loss of proper return on investments held” and negligence in Octagon’s management of his finances and investments.
He rejected Mr North’s assertion that Hewitt would have wanted to invest in the ill-fated Lehman Brothers but said the “hypothetical” investment document before the court simply outlined a range of stock “bench-mark indices”.
Hewitt accuses Octagon Inc. of misleading and deceptive conduct, unjust enrichment and management incompetence.
Court documents show that between 2005 and 2006 Hewitt was paid $6.75 million in endorsements and tournament fees.
His off-court earnings included a Channel 7 deal for $600,000, a New Idea payment of $84,000, Nike funds of $3.5 million, Yonex racquets paid $2.3 million and Optus paid $130,000, the records claim.
Hewitt also received $330,000 for endorsing tennis games for video companies and tournament organisers handed over $340,000 in appearance money.
Hewitt, 28, claims he severed ties with Octagon in 2004.
Monday’s hearing centred on an application by Hewitt’s legal team to have Octagon Financial Services added to the pending trial as a co-defendant to Hewitt’s counter-claims. The decision date is yet to be fixed.