Unregistered MIS scheme wound up
The Federal Court Of Australia has wound up an unregistered managed investment scheme (MIS) following action brought by the Australian Securities and Investments Commission (ASIC).
The MIS involved Princeton View retirement home in Brighton and Primelife Corporation.
The orders complete the last of 39 Federal Court proceedings brought by ASIC against Primelife since 2004. More than 20 schemes, 800 investors and 40 defendants were involved in the proceedings, which related to $108 million of investor funds. The defendants were unrelated to Primelife.
Justice Goldberg noted that the retirement facility in Brighton would be purchased by Primelife and the funds from the purchase would be used to repay all initial investments by investors.
The court considered an independent accountant’s report and responses from investors who received an order from ASIC to ensure they were aware of what was proposed.
ASIC brought federal proceedings in 2004 against Primelife and a number of other defendants who had been involved in promoting and managing the unregistered schemes to a large number of investors since 1997.
AUTHOR
Benjamin Levy
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