ASIC moves on unregistered investment schemes
The Australian Securities and Investments Commission (ASIC) has sought orders from the Federal Court of Australia for the winding up of several Melbourne-based investment schemes that were not registered as required under the Corporations Act.
The managed investment vehicles in question were those operated by Peter Berlowitz, HLP Financial Planning, Leaberl Pty Ltd and Beachmere View.
The regulator’s main concern over these schemes is that investors were not provided with the information and protection they were entitled to under the Corporations Act.
ASIC is also anxious about each company’s ability to pay back the monies investors have placed in the schemes.
After an investigation into the schemes, the corporate watchdog alleged HLP Financial Planning offered investors in its promotional material investment opportunities that would deliver returns of 5 per cent in one year, 11 per cent in two years, 57 per cent in three years and 67 per cent in four years.
To date, ASIC has established that 55 people invested a total of $5 million in the schemes between April and September, 2005.
These monies were converted into loans to Beachmere View and Berlowitz in March 2006 and were purported to return 10 per cent per annum to investors.
In addition to the action against Berlowitz and the four aforementioned companies, ASIC is seeking to have 13 other companies associated with the investment schemes wound up.
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