ASIC slams unregistered investment scheme
A managed investment scheme, which was not registered to meet requirements, felt the weight of the Australian Securities and Investments Commission (ASIC) in a federal court proceeding in Melbourne yesterday.
In connection with the proceeding, ASIC also accepted an enforceable undertaking from William Lionel Lewski and three companies that are associated with Lewski, which were allegedly connected to the promotion and operation of the scheme.
The proceedings arose out of concerns ASIC had in relation to offers made by Lewski and the three companies, Brighton RV Syndication Pty Ltd, Brighton RV Holdings Pty Ltd and the Australian Commercial Property Syndication Pty Ltd to buy back members’ interests in the scheme in January, 2006. ASIC was concerned that the offers were made without providing members with adequate information in relation to the value of the offers, and that the offers were made at a time when ASIC already had proceedings in place to wind up the scheme.
The scheme, which is associated with Princeton View retirement village in Brighton, Victoria, will be fully investigated by a court-appointed independent accountant. Copies of an investigation report will be provided to the scheme members, who will then be given an opportunity to make proposals to the court as to how the scheme should be wound up.
Under the terms of the enforceable undertaking, the Lewski parties will commission a qualified independent person to conduct a valuation of the scheme’s assets, both at the date the offers were made and at the date of the enforceable undertaking. The parties are required to pay members, who accepted the January 2006 offers, any difference between the higher of the two valuations and the amount that they received pursuant to the offers. The parties must also submit a proposal to wind up the scheme.
ASIC first alleged that the schemes were not registered as required under the Corporations Act in September 2004, when it filed 37 proceedings in the Federal Court of Australia.
ASIC also brought proceedings against Primelife, which it settled in April 2005, and a number of other defendants including parties, which ASIC alleges have been involved in promoting and managing the schemes to a large number of investors since 1997.
The matter is due to return to court on February 8, 2008, for the hearing of further proposals and submissions in relation to the winding up of the scheme.
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