Nearly a decade after reaching a settlement with the Australian Taxation Office (ATO), the Binetter family, known for founding the Nudie Juice brand, remains embroiled in a complex legal dispute over allegations of hidden offshore assets. The family’s ongoing conflict with liquidator John Sheahan centers on claims that millions of dollars were concealed abroad, despite a 2014 agreement intended to resolve their longstanding tax issues.

John Sheahan, appointed liquidator of several Binetter family companies, alleges that Michael and Andrew Binetter, sons of the late Erwin Binetter, transferred substantial sums offshore in the lead-up to the deal with the ATO. He estimates that approximately $150 million remains unaccounted for. The liquidator claims these transfers were part of a broader scheme involving back-to-back loans arranged through Israeli banks, which the ATO has contended were structured to generate artificial tax deductions, thereby reducing the Binetters’ Australian tax liabilities.

The legal battle dates back to 2015 when the ATO sued the Binetter family, alleging a tax avoidance scheme. The family settled for $45 million in 2018, agreeing also to assist in litigation against financial institutions involved in facilitating the scheme, eventually recovering $137 million. Despite these settlements, Sheahan contends significant funds are still outstanding and has pursued further legal action in both Australia and the United States.

Michael and Andrew Binetter have resisted examination attempts by the liquidator. Michael has invoked protections against self-incrimination multiple times in U.S. courts, while Andrew has reportedly undergone surgery for a brain tumor amid the dispute. Both brothers now reside outside Australia, with Andrew in Puerto Rico and Michael in New York. Sheahan maintains that the ongoing investigations are necessary to prevent further depletion of company resources and maximize creditor returns.

The family dispute has also led to internal divisions. Ron Binetter, a third brother not targeted by the ATO, has provided evidence against Michael in related proceedings, leading to further estrangement within the family.

The Binetters have criticized Sheahan’s actions, accusing him of undermining the 2014 settlement by filing new proceedings on the last day allowed and delaying their service. A family spokeswoman questioned the costs incurred through ongoing legal actions and expressed skepticism about the benefits of the liquidator’s persistent pursuit.

In recent developments, Australian courts have ordered related companies to provide security for legal costs incurred by Andrew Binetter and his wife, Samantha Kelliher. Meanwhile, a U.S. bankruptcy judge rejected Michael Binetter’s broad claims of self-incrimination protection, potentially allowing renewed scrutiny in American courts.

Sheahan has also flagged connections between the Binetters’ activities and a U.S.-based business operated by Andrew—Nate’s Fine Foods —which he argues is relevant to the overall tax investigation.

While Sheahan has extracted over $210 million through previous actions involving Binetter companies, his continued legal efforts signify a protracted effort to resolve complex tax avoidance allegations spanning multiple jurisdictions. The ATO has reportedly been kept regularly informed of these investigations and supports Sheahan’s pursuit. The case remains a significant example of the challenges faced in enforcing tax compliance across international boundaries.