The Australian Securities and Investments Commissions (ASIC) has taken action to wind up five companies associated with two land banking schemes, and to disqualify Michael Grochowski and Ian Edward Stephens from managing corporations.
An ASIC investigation led the regulator to appoint liquidators to five development companies associated with the schemes, known as the Hermitage Bendigo scheme and the Veneziane scheme.
ASIC alleged that the development company, Project Management (PMA), and its officers Grochowski and Stephens, were involved in the operation of the land banking schemes, controlling bank accounts relating to the other four companies.
ASIC was concerned that the land banking companies were insolvent after an investigation suggested that they raised in excess of $15 million from unsophisticated investors by the sale of options to purchase land or off the plan contracts of sale in land proposed to be developed, however the development companies never owned the land.
