Illegal property scheme shutdown
The securities watchdog has obtained court orders against two illegally managed investment schemes associated with property developments known as Varsity Lodge in Ipswitch, Queensland, and Kallangur Mews in Kallangur, Queensland.
The Australian Securities and Investments Commission (ASIC) alleged that between January 2004 and September 2006 the Varsity Lodge scheme and the Kallangur Mews scheme raised over $2.9 million from investors for property development, but were not registered in accordance with the Corporations Act. The Supreme Court of Queensland further declared that the companies were not holding a valid Australian Financial Services Licence.
ASIC alleged that both schemes were promoted through Lifecare Services Australia. The directors at the time included Robert Adcock, Colin Francis and David Stoyakovich.
The property developments included a proposed development of student accommodation in Ipswich and an aged care facility at Kallangur.
The court has ordered that the schemes be wound up and has granted injunctions permanently restraining the respondents from dealing in financial products or carrying on a financial services business.
Recommended for you
The Financial Services Council has appointed a new deputy chair for its board.
ASIC chair Joe Longo has told compliance professionals they need an “attitude of compliance” beyond written policies, how can AFSLs achieve this without alienating their advisers?
Peri and menopause training founder and TV journalist Shelly Horton has hit back at calls for businesses to introduce menopause leave.
Pendal has told investors it will start winding up its Enhanced Credit fund from December, its third fund closure this year.