Geoffrey Edelsten's Palazzo Versace, Gold Coast auction halted by Ohio, US court order

The former entrepreneurial medico Geoffrey Edelsten was halted from auctioning his opulent Palazzo Versace, Main Beach apartment on the weekend.

A US bankruptcy judge Lawrence Walter ordered the 10.30am Sunday auction's abandonment after an eleventh hour legal application motion by Edelsten's former US business partners, the Mawardi family of the Vegas fashion label, Nurielle who made estranged wife, Brynne Edelsten's 2009 Brownlow showstopper.

Geoffrey Edelsten filed for Chapter 11 bankruptcy last week in Ohio, where he is locked in a legal battle with former business partners over control of an property investment portfolio.

"The proposed sale of the penthouse identified in the motion shall be cancelled forthwith by Edelsten," bankruptcy judge Lawrence Walter ordered, as reported by Fairfax Media.

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Edelsten has pursued state and federal court proceedings since they were commenced by Edelsten in 2012 in the Florida South District Court. 

The defendants were Rafael Mawardi, aka "Alfie" Mawardi and Isaac Mawardi, aka Keith Mawardi. The proceedings relate to Geoffrey Edelsten v. Rafael Mawardi , Isaac Mawardi, Nurielle, LLC, Nurielle Bal Harbour, Corp, House of Nuriella Miami, LLC, House of Nurielle.Com, LLC, House of Nurielle, LLC, Cinema Clothing USA, LLC, Nuri & Elle Studio, Inc. and Scoop Bar & Grill, LLC.

The portfolio included a housing complex in Dayton, Ohio. 

The former business associates seemingly struck a settlement deal last September which has since unravelled.

Edelsten first met Rafael Mawardi in 2010 and in 2011 Mawardi invited him to invest in his group of companies.

Edelsten's initial claim was that he had invested many millions of dollars, but had received nothing in return.

The Gold Coast apartment was bought in late 2011 before its $1.5 million refurbishment was set to be auctioned this weekend through Lucy Cole of Lucy Cole Prestige. It reportedly cost around $3 million, although the transfer documents suggest it was around $600,000 for the property, which was mortgaged with a $650,000 loan in mid-2013 at 9.25%.

The listing has disappeared from the agency website along with realestate.com.au.

Geoffrey Edelsten's estate agent had previously told the Gold Coast Bulletin's Quentin Tod that the penthouse was surplus to his needs. It comes as his wife, Brynne's publicist John Scott confirmed the Melbourne-based couple had split six weeks ago and were negotiating their settlement.

The two-level property, which overlooks the Broadwater, comes with a large rooftop garden with spa.

It comes with genuine Versace furniture imported from Milan comprising the finest leathers and brocades, exclusive Italian bed linen and tableware, exquisite lighting including a massive crystal chandelier.

"Costing over $1.5 million dollars, the refurbishment has created a splendid and unique living environment at the Gold Coast's most exclusive address," the Lucy Cole markting says.

Art sculptures in the garden were flown in by helicopter. It comes with marina berth.

His US financial troubles stem from a fallout with business partners on control of the House of Nurielle fashion label, an executive jet, Bombadier Challenger 601, a casino in the Dominican Republic, Casino Playa Chiquita and two slum rental housing complexes in Memphis, Tennessee and the one in Dayton, Ohio with 680 dwellings.

Mr Edelsten's Australian lawyers previously told Fairfax Media the bankruptcy filing was a strategy to "better realise the investments made in the US."

Jonathan Chancellor

Jonathan Chancellor

Jonathan Chancellor is one of Australia's most respected property journalists, having been at the top of the game since the early 1980s. Jonathan co-founded the property industry website Property Observer and has written for national and international publications.

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