Newsreader's property empire crumbling amid police raids Big tax trouble for boutique developer Property reporter Chris Vedelago says things aren't looking good for Simone Semmens who's heading to court next month over an unpaid $10.4 million tax bill. The property empire of once-feted developer Simone Semmens has collapsed following a federal police raid over an unpaid $10.6 million tax bill and the repossession of the historic Toorak mansion Edzell House. It's the most serious financial blow yet for the former newsreader, spin doctor and beauty queen, who has been pursued by creditors for nearly two years over tens of millions of dollars in debts to the tax office, lenders, tradespeople and solicitors. Supreme Court documents say commonwealth authorities recently raided Ms Semmens' sprawling riverfront estate, which is believed to have been jointly staged by federal police and the tax office as part of an investigation into her repeated failure to pay income taxes. Simone Semmens ... Property empire in tatters after a federal police and tax office raid. Photo: Gerry Angelos Last month, lenders also repossessed the 30-room St Georges Road property in a bid to recover about $13 million in debt Ms Semmens had run up after purchasing it for $11 million as her latest live-in luxury renovation project. The home has since been on-sold to businessman and Liberal Party power broker Andrew Abercrombie, who BRW estimates is worth $465 million. The pending foreclosure and sale reportedly sparked ugly scenes between Ms Semmens and one creditor, Michael Spivakovsky, who sold her Edzell House and provided nearly $6 million in finance. Mr Spivakovsky, son of famed pianist Jascha Spivakovsky, said in an affidavit Ms Semmens "got down onto the floor and grabbed me by the knees and said: 'I'm begging you, don't do it'." Two days later, Ms Semmens allegedly threatened "there would be trouble" if Mr Spivakovksy enforced a notice for her to quit the property, saying: "I'm not going to leave; I'm staying no matter what." She later added: "Don't worry, I won't lose as I've put everything into my children's names." Mr Spivakovsky and the other lender, La Trobe Financial Asset Management, estimate they were losing about $38,000 a week in unpaid interest. Court records show Ms Semmens had been staking her financial survival on the sale of another luxury development project, the historic Caulfield North estate Rosecraddock, which she had been renovating for years and hoped to sell for at least $15 million. But the highly-leveraged play began to unravel when a prospective buyer backed out of a deal to buy the property for $13.1 million, forcing Ms Semmens to accept an alternative offer of just $10.6 million from Kmart chief Guy Russo in late 2012. The proceeds from the sale were seized by Westpac, which was owed more than $13.3 million and had been granted a possession order for Rosecraddock. Last year, Ms Semmens attempted to recoup $9 million by subdividing and selling off a portion of Edzell House's Yarra front grounds but the deal never eventuated. Ms Semmens has also been pursued by a series of disgruntled tradesmen and lawyers, some of whom have won court actions over unpaid bills. Last year, one builder applied to have Ms Semmens declared bankrupt in the Federal Magistrates Court after she allegedly did not pay a $37,000 settlement ordered by the Victorian Civil and Administrative Tribunal. Fairfax Media understands Ms Semmens had the notice set aside by agreeing to pay the outstanding bill. Ms Semmens is due to face court early next month over the Tax Office's $10.62 million claim for unpaid taxes, interest and penalties. Land title records show Ms Semmens and her development company, Hamilton Bay Pty Ltd, have no other property assets. One of her earlier companies, Semco Developments, was placed into liquidation in late 2010 and owes $2 million to unsecured creditors, according to ASIC documents. Ms Semmens and her lawyers, Clemenz Evans Ellis, did not respond to requests for comment.