Lemon scheme turns sour
An administrator has been appointed to the Victorian Soho Lemon Management scheme. Director Peter Russell-Clarke says he requested an administrator be appointed to protect the investors in the scheme.
The scheme has attracted $1.2 million about 80 investors in an offering, sold mainly through financial planners.
Russell-Clarke also claims he has called in ASIC to investigate the financial management of the scheme, saying the company's books were being withheld by accountant Egon Grossberg of the Melbourne accountancy firm Grossberg Partners.
Grossberg told Money Management that the books had been handed to ASIC last week and he has had discussions with the corporate watchdog to explain his actions regarding the company.
"ASIC requested the books by the Friday (August 4), but I explained I wanted to photocopy everything and would deliver the books on Monday, which I did," he says.
A spokeswoman from ASIC confirmed that the commission now had Soho's books.
Most of the funds raised through the first prospectus for Soho have been released by the trustee, Australian Rural Group. Grossberg says there is still some money due from the investors, although this is understood to be very little.
The investment scheme was to develop a lemon farm on Victoria's Bellarine Peninsula.
The original prospectus, issued on April 24 last year has now expired and plans for a second prospectus have been temporarily shelved due to the dispute.
"I won't go on with the second prospectus until all is well with the first one," says Russell-Clarke.
It is not the first time Soho as been the subject of a dispute. In January this year, Melbourne solicitors Voitin Walker Davis sought a winding up order against Soho over unpaid legal fees. It is understood the fees were paid and the winding-up order dropped.
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