TheAustralian Investments and Securities Commission(ASIC) has obtained compliance and asset preservation orders from the Supreme Court of New South Wales against Elm Financial Services Pty Ltd and its directors.
The orders, which were made by consent, prohibit directors Dennis Howell Terracini, Andrew Dennis Terracini and Duncan Grant McCartney from dealing with funds received from investors and assets acquired in six investment schemes.
In the ongoing investigation, ASIC alleges that investors’ funds were used by Elm or by companies associated with Elm for property developments and other purposes.
ASIC also claims that advisers of Elm breached the Corporations Act by recommending these schemes to investors, who had limited investment experience.
In taking the action ASIC also stated that companies in the Elm group failed to repay investments upon maturity in three of the schemes.
ASIC alleges that Elm illegally pooled investor funds and placed investments with Ann Street Mezzanine in its own name rather than in the names of the investors.
Robert John Kay and Howard Young, and six related companies are also defendants in the proceedings and are subject to these orders.
The related companies are Elm Nominee Services Pty Ltd, Elm Management Services Pty Ltd, Elm Property Developments Pty Ltd, Fletcher Securities Pty Ltd, E Star Developments Redfern Pty Ltd and E Star Developments Surry Hills Pty Ltd.
The case has been stood over for further directions on 17 May 2004.
