Supreme Court orders return of offshore funds
The New South Wales Supreme Court has ordered the return to Australia of more than $1 million of investor money held in offshore banks and securities trading accounts after an application by the Australian Securities and Investments Commission (ASIC).
The funds belong to investors in the Secured Bond Master Fund in the United States and Hong Kong. The accounts were frozen by an earlier court order.
ASIC believes that the fund had the characteristics of an illegal managed investment scheme and that some funds were being used to pay off existing investors, who believed they were being paid interest returns on existing payments. ASIC also believes that the funds were used to pay the defendants or the trusts or companies associated with them.
ASIC alleged that five individuals, David John Hobbs, Min Hua Li, David John Collard, Bi Hong Dong, and Li Men Zeng, contravened the Corporations Act by operating the fund scheme. It also alleged that Li, Zeng, and Collard were running a financial services business without the required Australian Financial Services Licence.
According to ASIC, more than 40 investors invested approximately $4 million in the fund. The fund advised investors of potential returns of 10 per cent per month, which may have been false or misleading.
The funds will be held by the Supreme Court after being returned to Australia.
Investigations into the matter are continuing.
Recommended for you
Professional services group AZ NGA has made its first acquisition since announcing a $240 million strategic partnership with US manager Oaktree Capital Management in September.
As Insignia Financial looks to bolster its two financial advice businesses, Shadforth and Bridges, CEO Scott Hartley describes to Money Management how the firm will achieve these strategic growth plans.
Centrepoint Alliance says it is “just getting started” as it looks to drive growth via expanding all three streams of advisers within the business.
AFCA’s latest statistics have shed light on which of the major licensees recorded the most consumer complaints in the last financial year.
