ASIC secures injunction against duo
By Liam Egan
The operators of an illegal Gold Coast managed investment scheme that funded medical centres have been issued with a temporary injunction by the Queensland Supreme Court stopping them from carrying out any financial services business in Australia.
The Australian Securities and Investments Commission (ASIC) also obtained declarations in the court against the two operators of Wealth Express International.
Jack Weavers, formerly known as Hamid Alenaddaf, and Denise Alenaddaf were found to have operated two illegal managed investment schemes.
They were also found to have provided financial advice without holding an Australian Financial Services Licence and to have issued financial products that required a product disclosure statement.
Weavers and Alenaddaf were also found to have engaged in misleading or deceptive conduct in relation to the issue of units in two unit trusts that operated bulk billing medical centres on the Gold Coast.
The Court heard 11 investors contributed $1.2 million in total to purchase units in two unit trusts that operated one bulk billing medical centre each. Each medical centre cost approximately $180,000 to establish.
The remaining funds were transferred to a company related to Weavers and Alenaddaf as ‘consultancy fees’.
ASIC alleged the pair made misleading statements on the financial performance of the medical centres at wealth creation seminars in North Queensland and Sydney between September 2004 and March 2005.
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