This comes after the Queensland Government withdrew up to $10 million in funding in response to a 60 Minutes report.
Late last year, the current affairs program alleged that Face to Face Training Services (FTF) was using high pressure tactics to recruit students, and handing out qualifications based on an easy “tick and flick” approach where little to no training was provided.
This involved one trainee, Dave Blake, claiming to be certified to drive a 30-tonne excavator despite never actually getting inside one.
Belfort himself was hired by FTF to motivate staff and one former FTF employee, Donna Hedley, said he would teach staff how to “tick and flick”, according to The Courier Mail.
At the time, an FTF spokeswoman said the organisation would investigate the reports, and that a lack of proper training was intolerable.
“The company does not promote, condone or endorse aggressive selling techniques,” she said.
A recent creditors meeting has revealed that Face to Face Training Services owed more than $5.3 million to 96 listed creditors.
They also owed $383,477.31 to employees for unpaid leave, superannuation and redundancy pay after they were terminated late last year.
Another creditor’s meeting is due to be held on April 13.
The two related businesses which also went into administration are Environment Training Australia and New System Homes, and they owe a further $1.3 million.
The owner of FTF Paul Conquest has argued the company’s collapse was due to the “unexpected cancellation of a contract” by the State Government “without cause”, according to the administrator Anne-Marie Barley from WRA insolvency.
Due to the lack of funding Conquest filed a claim in the Supreme Court of Queensland for money owed by the Department of Education and Training.
He argued that the Queensland Government disregarded their rights by making an example of FTF.
A training organisation in Brisbane linked to Jordan Belfort (otherwise known as The Wolf of Wall Street) and its two related business have been put into administration following allegations of malpractice.