This article is from the Australian Property Journal archive
THE Federal Court in Melbourne has appointed receivers and managers to four property projects associated with developer Mark Letten.
In addition, the Court has also made declarations that 11 joint venture property projects were unregistered managed investment schemes, following an application brought by ASIC.
ASIC believes that more than 1000 investors placed more than $80 million in the projects.
Damian Templeton and Phillip Hennessy of accounting firm KPMG were appointed receivers and managers of the unregistered managed investment schemes and 43 related companies.
The receivers and managers’ role will be to secure the assets, identify the investors and establish the current financial position of the schemes and the companies.
Letten consented to the appointment of receivers and managers to the majority of unregistered schemes and companies.
ASIC alleged that Letten promoted and sold buy xanax cod investments in commercial property joint venture projects that should have been registered as managed investment schemes.
ASIC is also seeking final declarations that Letten carried on a financial services business without holding an Australian financial services licence and that he operated each managed investment scheme in circumstances where the schemes should have been registered under the Act.
ASIC has also applied for orders that Letten be permanently restrained from operating a financial services business and from promoting or operating managed investment schemes.
Meanwhile in the interim, Letten has provided undertakings to the Court to not deal in any manner with the funds or assets of the defendant companies and schemes and that he refrain from promoting interests in any managed investment schemes, be they registered or unregistered.
Australian Property Journal
