ASIC seeks to wind up Linchpin and Endeavour
The Australian Securities and Investments Commission (ASIC) has commenced proceedings against Linchpin Capital Group (Linchpin) and Endeavour Securities (Endeavour) following an investigation into the managed investment schemes.
ASIC alleges Linchpin was operating the scheme without holding an Australian Financial Services Licence and used investor funds for its own purposes.
ASIC also alleged Endeavour entered into related party transactions in contravention of the Corporations Act and failed to disclose those transactions to investors.
The investigation found that monies invested in the managed investment schemes had been misapplied or misappropriated by the companies.
ASIC said it is now seeking orders in the Federal Court to restrain the companies from operating the schemes and providing financial services, and to prevent the companies from dealing with assets or investor funds.
The regulator is also seeking to appoint receivers over the assets of the company and wind up the schemes.
AUTHOR
Anastasia Santoreneos
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