ASIC moves against failed land developer
The Australian Securities and Investments Commission (ASIC) has moved to remove administrators Hall Chadwick Chartered Accountants from failed land banking company Midland HWY Pty Ltd, after it found they were appointed without notifying many investors.
Midland HWY was the developer of a failed land banking scheme known as Hermitage Bendigo (previously Acacia Banks) located just outside of Bendigo in Victoria.
Hundreds of mum and dad investors lost millions of dollars under the scheme.
Midland HWY appointed PPB Advisory as joint administrators in July after it was placed into voluntary administration.
But Midland HWY replaced PPB Advisory with Hall Chadwick Chartered Accountants as administrators on 14 July.
ASIC has started proceedings in the Federal Court in Victoria against David Ross and Richard Albarran from Hall Chadwick, and Midland HWY to remove them as administrators or to nullify the first meeting of its creditors held on 14 July.
"ASIC is concerned that the appointment of Messrs Ross and Albarran, as replacement administrators to Midland HWY, occurred in circumstances where many investors in Hermitage Bendigo, who may also be creditors, were not given notice of the first meeting of creditors," ASIC said.
The hearing is set for today.
AUTHOR
Malavika Santhebennur
Recommended for you
Sequoia Financial Group has declined by five financial advisers in the past week, four of whom have opened up a new AFSL, according to Wealth Data.
Insignia Financial chief executive Scott Hartley has detailed whether the firm will be selecting an exclusive bidder for the second phase of due diligence as it awaits revised bids from three private equity players.
Insignia Financial has reported a statutory net loss after tax of $17 million in its first half results, although the firm has noted cost optimisation means this is an improvement from a $50 million loss last year.
With alternative funds being described as “impossible” for fund managers to target towards advisers without the support of BDMs for education, Money Management explores the evolving nature of the distribution role.
