|ASIC Acts on Unregistered Property Schemes|
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ASIC appoints receivers to five unregistered property schemes associated with a Melbourne company
ASIC has appointed accounting firm KPMG as receivers to an additional five unregistered property ventures associated with Melbourne company director Mark Letten.
In July, ASIC obtained orders relating to a further five suspected schemes operated by Letten and companies associated with the schemes.
ASIC's action follows the launch of an investigation into a number of unregistered schemes involving more than 1000 individuals who invested about $80 million.
The court found that three of the schemes were not registered, contrary to requirements under the Corporations Act, and subsequently ordered they be wound up and a receiver and manager be appointed.
Those three current schemes, which involved Australian entities raising funds from investors in Australia and New Zealand, relate to New Zealand properties - the Moorhouse Shopping Centre Project, the Cass Bay Spur Project and the Mount Hutt Project.
KPMG's Damian Templeton and Phillip Hennessy have been appointed receivers and managers of the scheme property and associated corporate entities.
While the court did not make a declaration as to whether the other two schemes - Tomasetti House Joint Venture and the Aurora Park Project - constituted unregistered managed investment schemes, KPMG were also appointed as receiver and manager of these schemes and their related entities.
KPMG is required to prepare disclosure reports regarding the property schemes by 27 August 2010.
The corporate watchdog alleges that Letten promoted and sold investments in commercial property joint venture projects that should have been registered as managed investment schemes under the Corporations Act.
The opinions expressed do not constitute investment advice and specialist advice should be sought about your specific circumstances.
Published on our website on Aug.9, 2010