Receivers take control of Letten properties

THE Australian Securities and Investments Commission has appointed receivers to a further five unregistered property ventures linked to Melbourne accountant Mark Letten.

ASIC’s action follows an investigation into a number of unregistered schemes run by Letten on behalf of 1000 individuals who invested about $80 million.

So far receivers have recovered $13.31 million from the sale of 167 – 173 Flinders Lane, which was purchased by Letten and celebrity health expert Dr John Tickel for $3.67 million in September 2001.

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 appointed.

Those three current schemes, which involved Australian entities raising funds from investors in Australia and New Zealand, relate to the following New Zealand properties:

Damian Templeton and Phillip Hennessy of accounting firm KPMG 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 constituted unregistered managed investment schemes, KPMG were also appointed as receiver and manager of the following scheme property and related entities:

ASIC 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.

ASIC is continuing with its investigation.

Australian Property Journal