ASIC cracks down on offshore scammers
Australians have been duped into investing millions of dollars with companies based in Western Samoa and Mauritius after an Australian Securities and Investments Commission (ASIC) investigation unearthed a spate of foreign groups operating unregistered managed investment schemes in Australia.
The six schemes and foreign companies at the centre of the inquiry will be wound up after ASIC successfully took its claims to the Supreme Court of Queensland.
The regulator found many Australian investors had been enticed into investing in the schemes after attending offshore seminars.
ASIC deputy executive director of enforcement Mark Steward says the regulator will take action to wind up any schemes that may be run illegally.
'ASIC has taken this action to ensure that all investment schemes operating in Australia are run according to the requirements of Australian law,” Steward says.
The Carsworthy Scheme duped approximately 220 people into investing almost $2.5 million through borrowing full retail amount to purchase a motor vehicle at a discounted price.
The difference between the retail price and the discounted price was invested into an allegedly “capital guaranteed” scheme.
Investors paid the first four payments on the belief that returns from the invested amount would cover future loan repayments, however this did not occur.
Also under the spotlight was One Accord Trading Services Pty Limited and Carsworthy Limited, a foreign company, all connected with the Carsworthy Scheme.
Edwardian Associates Limited is a foreign company associated with the Edwardian Associates Scheme which drew in almost $11 million after investors signed up for loans.
The scheme suckered in investors with the pledge of minimum returns of 7 per cent per annum, although the regulator found this also did not transpire.
Meanwhile Coppertone Investments extracted almost $5million from Australian investors who purchased shares in the company.
The offer to purchase shares was made without a disclosure document having been lodged with ASIC.
The Supreme Court appointed PricewaterhouseCoopers as receivers and managers of the Carsworthy and the Edwardian Associates Schemes, as well as liquidators of each of the foreign companies.
The Court also prohibited Arthur James Robinson from withdrawing, transferring or otherwise dealing with any funds held in specified bank accounts.
Robinson, along with Peter Anthony Edwards are directors of One Accord Trading Services.
Edwards is a director of the foreign companies.
Recommended for you
Shadow financial services minister, Luke Howarth, has stressed the Coalition’s commitment to reforming the CSLR, adding that he ultimately wants to “get rid of it”.
With just over three weeks until the federal election, the FAAA has put a reduction in red tape and further support for new entrants on its priority list for an incoming government.
The corporate regulator has issued infringement notices to three AFSLs whose financial advisers provided personal advice to a retail client while unregistered.
Rather than taking a controlling approach, the latest generation of overseas private equity deals is helping advice firms to achieve their growth ambitions, three commentators have said.
