Blue Chip founder Mark Bryers is being paid $10,000 to $12,000 a month - up to $144,000 a year - while many of his investors struggle to make ends meet.
But yesterday, he apologised to those investors, many of whom lost large sums when the Blue Chip group was put into liquidation.
"I am not asking for forgiveness," he said. "But as a matter of conscience I feel it is entirely appropriate that the least I can do is offer my unreserved and deepest apologies."
Bryers lives in an apartment in The Rocks precinct in Sydney. The $5000-a-month rent is paid by Northern Crest Investments, formerly Blue Chip Financial Solutions, whose chairman is Marc Wilson, a Canberra accountant.
Northern Crest intends to operate a streamlined property investment service similar to the original Blue Chip concept.
Related-party lending by Blue Chip to Bryers was an aspect of its failure.
According to a probation report filed in the District Court, Northern Crest pays Bryers $10,000 to $12,000 a month (a potential annual income of $144,000) for consultancy services.
He must come to an arrangement with the Official Assignee regarding instalments to be paid to his creditors and to pay his fine.
In his apology, Bryers said he had devised a scheme which aimed to compensate former investors who paid a deposit and did not receive a property.
The scheme had been put to the board of Northern Crest Investments, and was subject to agreement and shareholder approval, he said.
Although his financial position was catastrophic "my resolve to set up and deliver compensation to those former clients is absolute. While it will take some time, I will deliver on that promise."
Meanwhile, the Weekend Herald has learned that investigators are satisfied that Bryers does not have assets salted away.
The Herald reported in March that all but $1 million or $2 million has been accounted for. A source has indicated that that money, too, had been accounted for to the satisfaction of the Official Assignee, who is responsible for administering Bryers' bankruptcy.
"When he got desperate he basically pawned everything [through securities on assets and personal guarantees]," a source said.
"He is being covered [for living expenses] entirely by people in Australia in the hope that they are going to make some money out of him in time ... from his intellectual property."
Bryers spent most of yesterday with the Official Assignee's staff.
On Thursday a District Court judge fined him $37,500 and ordered him to do 75 hours of community work.
He has estimated he has debts of $157 million against assets of clothes, furniture and golf clubs.
Yesterday, he said he was being supported by friends. "My present position is that I am bankrupt."
None of the Blue Chip investors are claimants in his personal bankruptcy, their claims are against Blue Chip companies.
Blue Chip collapsed in 2008, owing around 3000 investors more than $80 million.
- ADDITIONAL REPORTING: NZPABy Phil Taylor Email Phil