It starts with a man of lofty ambitions. Luke Westley, a former marketing manager at Horticulture Innovation Australia, did not dispute claims that he misappropriated $277,000 from his former employer to finance a July production of Avenue Q at the Enmore Theatre, of which he was the executive producer.

Seven weeks after final curtains, many members of the cast and crew are yet to be paid a cent for their efforts. More than $433,000 in ticket sales has been held in court after HIA secured a freezing order.

The court heard that Mr Westley, whose employment was terminated in July, had created or doctored false invoices directed to HIA which deleted all references to Avenue Q. In the course of his job, he had authority to approve payment of invoices up to $300,000 for "marketing and promotional programs".

Those invoices included payments for the puppets used in the show and the licence to perform the work. Justice James Stevenson also found HIA was entitled to claim another $40,359 Mr Westley had used to advertise Avenue Q on the back of taxis.

Mr Westley conceded he misappropriated the majority of the funds in question and told the court he intended to pay the money back. Justice Stevenson said he could not preference either the cast or HIA – both unsecured creditors – in terms of who should be paid out first. He ruled the funds held in court should be paid to Mr Westley, with the subsequent distribution to be negotiated between the parties or in insolvency.

For the cast awaiting payment, there is now more uncertainty. "We've just got to keep on keeping on," says Shannon Brown, the show's music director who is owed close to $30,000. He says the experience was a lesson "not to trust everyone".

"I think he [Mr Westley] wanted to try and be a good producer but he frizzled out closer to the show opening," Mr Brown says. "That's when we saw things happening and we could just feel something was going down, something wasn't right."

But far from an opening night fiasco, Avenue Q was a stellar success. The production garnered healthy crowds and earned positive reviews – a marked success given the Enmore does not typically host musical theatre.

One member of crew, who is owed about $5000, said he had "a great time" working on the show but described Mr Westley as an "arrogant and very emotional" person who "cried all the time" on set. According to the source, Mr Westley at one point suggested staging a production of Rent (a rock musical about people living with HIV/AIDS) using the puppets from Avenue Q.

Mr Westley, 33, has also harboured political intent. He unsuccessfully contested the seat of Adelaide for the Liberal Party at the 2010 federal election, after failing to win a state seat earlier that year. He did not return calls on Friday.

HIA chief executive John Lloyd told the Herald: "The judgment speaks for itself as to what has occurred. I decline to comment further as the matter remains under police investigation." It is understood the company is considering an appeal.

The Media, Entertainment and Arts Alliance is representing 12 of the cast and crew. Chief executive Paul Murphy said it was "an unusual set of circumstances" that had befallen the production but remained hopeful the cast would be paid their dues.