Published: July 26, 2025
Sydney, Australia — Explosive court documents have exposed the Australian Financial Security Authority (AFSA) as complicit in a cover-up of proven financial fraud committed by one of its own officers — a cover-up that directly enabled Channel 9’s retaliatory bankruptcy campaign against Australian musician and entrepreneur David Otto.
Despite receiving a formal complaint outlining an open fraud on the court by AFSA officer Tim Liu — including precise dates, emails, and documentary evidence — AFSA management triaged the matter back to Liu himself and took no further action. The material facts were not disputed: Liu deliberately concealed a court-releasing document sent by Otto on 17 January 2020, referencing instead only the emails immediately before and after to falsely maintain a bankruptcy order.
Channel 9’s role is now laid bare in affidavits and recordings. In 2016, they threatened to bankrupt Otto while solvent unless he stopped defending himself from their defamatory reporting — a threat which was ultimately carried out, despite Otto’s solvency and clean financial record. The bankruptcy was based on fictitious invoices and inflated claims, with Otto’s then-lawyer Michael Rollinson — now disbarred — shown to have hidden key evidence from the court.
The direct consequence of Liu’s concealment was catastrophic. Otto was blocked from working, accessing his own funds, or traveling for over eight years. His home was seized, his studio destroyed, pets killed, and his music career dismantled. Yet the documents confirm: he was never insolvent. The financial restraint was based on a manipulated omission, knowingly executed by an officer of the court.
In a recorded phone call, AFSA officials acknowledged that Otto’s complaint — which provided clear, dated proof of misconduct — was simply forwarded to Liu with no investigation. No internal review was launched. No action was taken. This confirmed Otto’s claim that AFSA knowingly protected its officer while enabling criminal misuse of court powers.
Otto has now initiated proceedings in the Federal Circuit Court seeking release and compensation for malicious abuse of power by both state and media entities. The claim includes AFSA’s documented mishandling of fraud, destruction of property and wrongful restraint — with projected damages ranging from $720,000 to over $1 million.
This case may represent one of the most egregious examples of coordinated institutional abuse in Australian financial history. Its impact could reshape oversight standards across federal bankruptcy practice and the handling of financial complaints involving judicial officers.
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