This article is from the Australian Property Journal archive
THE Australian Securities and Investments Commission has obtained court orders to wind up four property development schemes in Western Australia.
ASIC alleges that the schemes have been promoted and operated by Frasers-The Project Managers Pty Ltd, Kenneth Fraser, Morag Fraser and companies associated with the Frasers as unregistered managed investment schemes.
The Federal Court in Perth has appointed Brian McMaster of KordaMentha to the role of independent accountant to oversee the winding up of the schemes.
The four schemes the subjects of the Court’s orders are:
- The Project at Baldivis, comprising the development at Lot 515 Sabrina Road, Baldivis;
- The Project at Baldivis, comprising the development at proposed Lot 41 of Lot 515 Sabrina Road, Baldivis;
- 10 Holmes Forrestfield Development, comprising the development at Lot 10 Holmes Road, Forrestfield; and
- 3 Anderson Forrestfield Development, comprising the development at Lot 3 Anderson Road, Forrestfield.
ASIC alleges the schemes that are the subject of the Court’s orders involve approximately 48 investors and $3.7 million of investors’ funds.
ASIC alleges that between June 2006 and July 2007, Frasers-The Project Managers Pty Ltd offered clients the opportunity to invest in schemes for the purchase and subdivision of rural land into residential lots adjacent to Perth. ASIC alleges that investors paid an expression of interest fee and in some cases a deposit, and that this money was pooled and used in relation to the schemes.
On April 10, the Federal Court granted interim ex-parte injunctions sought by ASIC against Frasers-The Project Managers Pty Ltd, Kenneth Fraser, Morag Fraser and five companies associated with the Frasers to prevent them from promoting and operating nine land subdivision schemes in Western Australia.
ASIC made the application as part of its efforts to preserve scheme assets for the benefit of investors. The orders made by the Court were not opposed by Frasers-The Project Managers Pty Ltd or other relevant defendants.
ASIC’s executive director of enforcement Jan Redfern said the regulator is keen to have an independent person take charge of the developments to ensure that investors are provided with transparency and clarity regarding their investments and can be assured that the information they are receiving is accurate.
“While these are winding up orders, the independent accountant will be able to assess what options are available and communicate with investors as to the most appropriate way forward to ensure maximum returns,” she added.
The matter will return to the Federal Court for further directions on July 24.
Australian Property Journal
