Illustration: Matt Golding.
Disgraced businessman Geoffrey Edelsten has admitted to blowing $63 million in less than two years, squandering his fortune on high living and a series of ''stupid'' investments.
The massive loss, and Mr Edelsten's claim he had only $90 in cash when he filed for bankruptcy in the US in January, is likely to raise questions with creditors about how he is paying for his lifestyle with new beau Gabi Grecko, a 24-year-old model, DJ and aspiring reality TV star.
The admissions have been made in a US court where the medical entrepreneur is fighting to retain control of his estate, which could now be worth just $1 million after he has paid all his debts.
On Friday, Mr Edelsten's estranged business partners, the US-based Mawardi family, asked a Florida judge to appoint an independent trustee to oversee control of the estate amid claims that Mr Edelsten had been concealing assets.
The legal move comes as The Sunday Age can reveal that Mr Edelsten has failed to disclose to the court the extent of his ownership in a fleet of luxury cars worth at least $3 million.
In sworn testimony in February, Mr Edelsten claimed to have five cars, including an Aston Martin, a Holden, a Lamborghini, a McLaren and a Range Rover.
But financial records obtained by The Sunday Age show Mr Edelsten also has an interest in two Ferraris, a 1930 Packard roadster and a Mercedes-Benz CL65.
The former doctor's penchant for high living was also questioned in court, with Mr Edelsten admitting he owned ''20 to 25'' cars in early 2012 and spent ''extraordinary'' amounts on clothing for wife Brynne at fashion label House of Nurielle in Las Vegas.
It was there that Mr Edelsten began his business relationship with the Mawardis, which saw him pump more than $22 million into a network of overseas investments that included the fashion house, low-rent apartment complexes and a casino in the Dominican Republic.
Mr Edelsten said it wasn't long before he had spent all of the $28 million he received from the sale of four medical centres in 2011. ''Squandered would be a better term,'' he said. ''Splurged.''
He told the court his investment strategy had been stupid but he said he had been a victim of predatory behaviour by the Mawardis. Mr Edelsten was also grilled about how he was meeting his expenses given he had only $90 in cash when he led for bankruptcy. ''I borrowed funds from my mother,'' he said.
Mr Edelsten declined to comment to The Sunday Age on how he is paying for his current lifestyle, which includes his new international romance with Ms Grecko.
''I have no comment to make about my financial affairs other than I am endeavouring to recover my and my affiliates' $27 million in the USA, which is proceeding satisfactorily and my affairs are under control,'' Mr Edelsten said. ''I personally own no cars.''
He also said that he expects to be vindicated shortly in an indirect criminal contempt proceeding brought in the US courts.
The reporters are listed on Mr Edelsten's Australia's Worst Journalist website.