This article is from the Australian Property Journal archive
THE Federal Court has disqualified Michael Grochowski and Ian Stephens from managing corporations as officers of failed land banking schemes Bilkurra Investments and Foscari Holdings.
Grochowski and Stephens have been banned for five and a half years and four years respectively. The Court found that while Grochowski was not a named director of Bilkurra Investments Pty Ltd and Foscari Holdings Pty Ltd (both in liquidation), he was an officer of the companies until they were wound up by the Court, on application filed by ASIC, in April 2016.
Both Bilkurra Investments and Foscari Holdings operated land banking schemes in Victoria, known as Hermitage Bendigo and Foscari. Promoters of the land banking schemes used Bilkurra and Foscari to raise approximately $24 million from investors.
The Court found that the appointment of Stephens as a director of both companies, who was an experienced chartered accountant, presented a false facade of meaningful oversight and governance of the companies’ affairs.
Further, the Court found Stephens failed to exercise any meaningful decision making and management responsibility for the companies, which had obtained large amounts of investment from the public.
“These bannings will help protect the public from further investing with officers of companies that repeatedly fail. ASIC will continue to investigate failed land banking schemes and take whatever action is necessary to ensure failed schemes do not continue,” ASIC Commissioner John Price said.
Australian Property Journal
