FORMER Australian TV star Susan Hannaford hit back at Seven's Sunday Night when she was asked if she had trouble telling the truth about her palatial lifestyle in the US.

Hannaford, who was married to eccentric millionaire, Emmanuel Margolin, owner of the famous El Caballo Blanco dancing horses, left Australia for another life overseas.

As Kitty Sullivan, Hannaford was a household name in the 1970s and '80s. But now she allegedly owes the Commonwealth Bank more than $4.65 million after being evicted from a Sydney harbourside property in 2013.

According to Sunday Night, she also owes the Internal Revenue Service (IRS) $1.5 million dollars.

In her interview with reporter Matt Doran, she showed him around her $9 million Hollywood mansion on Mulholland Drive in Beverly Hills.

She claims Madonna and the Red Hot Chili Peppers are her neighbours.

But when Doran asked her if she had trouble with telling the truth, her reply was a surprise.

"Do you have difficulties, Susan, with telling the truth?," he asked.

She replied: "Do you have difficulty with your IQ? because the questions you are asking me are just inane."

MORE: Matt Doran reveals what he saw at Susan Hannaford's home

Susan Hannaford, during an interview with Sunday Night reporter Matt Doran. Picture: Supplied/Seven
Susan Hannaford, during an interview with Sunday Night reporter Matt Doran. Picture: Supplied/Seven

When Doran asked her why she had not paid the bank back, she went on to claim the Commonwealth Bank was "unscrupulous", and that there was a lot of "fake news being bandied around".

Doran then went on to ask her about her ambition to be a real estate mogul in the US.

Hannaford said she raised the money for her first condo "intelligently".

But Doran then said there were very serious questions about where all of her money was made and where it all went.

He asked forensic accountant, Craig Greene, to take a closer look.

Greene, who is a certified and works regularly with law enforcement, claimed that she had stopped paying the bills on properties she owned.

In just a few years, Hannaford had built, but then lost an empire. She defaulted on the loans to each of the nine properties in her name and when the banks foreclosed and sold those homes from under her, they managed to get back less than eight of the $22 million she'd borrowed.

She also had 74 different foreclosure actions that were filed against her.

Hannaford said that there was a huge recession, and it was "it was a foreclosure in a recession".

Susan Hannaford with Sunday Night’s Matt Doran. Picture: Supplied
Susan Hannaford with Sunday Night’s Matt Doran. Picture: Supplied

Greene told Sunday Night that eventually those debts will go away because the statute will run out.

"You know it's the old story, you can't get blood out of a turnip, you can't get water out of a stone. We don't have debtors prisons, so you can't be thrown in jail for not paying your debts," he said.

Doran also showed her a document from the IRS, which he said showed an amount outstanding of $1.5 million dollars.

Hannaford said they were not true and "actually completely erroneous".

"I know what they're claiming, but we are in the appeals court with them right now and we've already settled half of this, because it's just fake news. It's incorrect. They made an error," she told Doran.

"I'm categorically saying I do not owe them that amount of money, yes."

When Doran asked her daughter Marquessa if her mother fled Australia to avoid paying the Commonwealth Bank, she said: "Sorry. Excuse me ... I think there has been a lot of false reporting in the media and I'm just going to leave it at that for now. I'm sure my mum can elaborate on that, but that has been some... ..a tremendous amount of false reporting."

Many of Hannaford's properties were put in the name of her mother Norma Parry.

Cast of TV show 'The Sullivans'. From right: Susan Hannaford, Paul Cronin, Lorraine Bayly, Andrew McFarlane, Steven Tandy and Richard Morgan (kneeling front).
Cast of TV show 'The Sullivans'. From right: Susan Hannaford, Paul Cronin, Lorraine Bayly, Andrew McFarlane, Steven Tandy and Richard Morgan (kneeling front).

According to Sunday Night's investigation, Norma Parry is the current owner of the Beverly Hills mansion Hannaford has, and the listed owner of many properties that went into foreclosure.

"If Norma is still alive, she is 96 years old address for her is in a place called Humble, Texas, which, strangely enough, is a car park," Doran said.

When asked if Doran could meet her mother Norma, Hannaford said she was being subjected to a "hostile interview".

"Oh, yes, because this is such a hostile interview, let me just bring all my family down here. Let's just bring everyone down, hostile interview," she said.

"Oh, you couldn't meet ... I would not give you the time of day after this interview, because you've been very rude."

Hananford then went on to defend herself again when Doran asked her about her new venture where she is renting out her Beverly Hills mansion for parties.

When he asked her about customers who claimed they were ripped of, she said: "Oh, we've had so many scam artists come to this place, you have no idea how many people come to the place, come to this house and don't want to pay the rent."

Designer and actor Susan Hannaford with her daughter Marquessa at their home in NSW> Picture: Supplied
Designer and actor Susan Hannaford with her daughter Marquessa at their home in NSW> Picture: Supplied

Dorna replied saying: "They say you are the biggest scam artist of them all."

Hannaford hit back, saying: "Look, I'm a little Aussie girl. If you think I'm a scam artist, fine."

When asked if she had any thing to say to Australians who are trying to work out if Kitty Sullivan, has gone on to become one of the greatest scam artists Australia has seen, she replied: "I think it's funny and I think trying to blame me for a recession is just ... It's silly."

Doran then asked: "You're not worried about the authorities coming after you?"

"No. That's just silly. You're so cute, but it's just ... It's silly," she said.

She then abruptly said: "I think you can walk through. I think we're finished anyway."

Their interview didn't end well, with Doran being told he was being "put on notice" by her.

"I'll just put you on notice," she said.

"Be careful what you say, because you know I do have lawyers."


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