ASIC pursues unregistered MIS operators in the west
The Federal Court of Australia last week granted interim injunctions against Frasers — The Project Managers Pty Ltd (Frasers) and five companies associated with Frasers to prevent them from promoting and operating nine land subdivision schemes in Western Australia, the Australian Securities and Investments Commission (ASIC) has announced.
ASIC alleged that between June 2006 and July 2007 Frasers offered clients investment opportunities in schemes that purchased and subdivided rural land into residential lots, in what it claims are unregistered managed investment schemes.
The investors paid an expression of interest fee and in some cases a deposit, ASIC said.
ASIC told the Federal Court that despite committing to stop, Frasers had continued operating the schemes and dealing with their assets.
ASIC believes that since June 2006 about 100 investors have invested approximately $5.5 million in the nine schemes.
“ASIC is seeking the appointment of an independent accountant to consult with investors and wind down the schemes in an orderly manner so that the interests of investors and creditors are treated transparently and fairly,” ASIC executive director of enforcement Jan Redfern said.
Managed investment schemes are required to be registered under the Corporations Act.
AUTHOR
George Liondis
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