This article is from the Australian Property Journal archive
THE Federal Court has ordered an illegal land banking investment scheme known as the VKK Investments Unit Trust (VKK scheme) and its operator Gem Management Group to be wound up.
The VKK scheme is land located at 64 Hutton Rd Keysborough in Melbourne’s south east. Around 125 investors invested a total of approximately $22 million into the scheme, which Gem operated since May 2010 on the expectation that the land at Hutton Road would be re-zoned, which has not occurred.
The Court orders followed an ASIC investigation identified which found the scheme was not registered, as required under the Corporations Act; and Gem did not hold an Australian financial services licence.
A number of investors in the VKK scheme were represented in the proceedings brought by ASIC and made submissions in support of ASIC’s application to wind up the VKK scheme and Gem.
Deloitte Touche Tohmatsu’ Robert Woods and Salvatore Algeri have been appointed as joint liquidators.
ASIC Deputy Chair Peter Kell said land banking schemes have been a particular focus of ASIC.
“ASIC reminds investors considering investing in land banking schemes they are often unregulated and that investors have little protection if something goes wrong.” Kell said.
Australian Property Journal
