ASIC cracks down in Brisbane and Sydney

The corporate watchdog has obtained injunctions against a Brisbane-based advice business, its directors and related entities, while in Sydney four individuals have been charged over their involvement in two investment companies that are now in liquidation.

In Brisbane, the Australian Securities and Investments Commission (ASIC) moved against Nimshay, trading as Superior Wealth Creation and Superior, its directors Andrew Carr and Andrew Gray and associated entities, the Carr companies.

According to ASIC, investors paid ‘mentoring fees’ for Carr’s financial and personal development advice, and paid fees to attend conferences Carr presented both locally and overseas.

ASIC alleges that between 47 and 100 people invested money in the Carr companies by way of ‘loans’, which promised repayment of part of the principal after six months plus a unit in a Brisbane property development, and the option to roll this over into a separate property investment in Brisbane.

The regulator believes between $3 million and $5 million has been invested through the Carr companies, and is concerned that the loans have not been repaid, and construction on the property development has not started.

Meanwhile in Sydney, Tunde Doja and Mohammad Zareei have been charged with unlawfully providing a financial service and inducing persons to deal in securities

Doja has also been charged with six counts of obtaining financial advantage by false or misleading statements and Zareei with two counts of creating false instruments, or documents, regarding an application for finance and an interest pre-payment application, which were both submitted to Macquarie Bank.

In addition, Zareei faces seven counts of obtaining a financial advantage by using false or misleading statements.

The charges relate to the conduct of these individuals concerning Progressive Investment Securities and Capital Investments Group, both currently in liquidation.

Doja and Zareei allegedly unlawfully provided financial services to investors who were enticed into investing in securities known as ORB 1, ORB 2 and OMIP 15—7, through the use of Macquarie Bank Margin Lending.

The investors were required to enter into agreements with Macquarie Bank for up to $300,000 in margin loans on each product. Many of these loans are now in default.

In October 2005, Macquarie Bank estimated its losses from these loans to be approximately $4.5 million.