ASIC investigates investment scheme
An Adelaide-based managed investment scheme that allegedly owes at least 78 investors about $56 million has been closed off by an interim order of the Federal Court.
The Australian Securities and Investments Commission (ASIC) obtained the order against the scheme as part of its ongoing investigation into Guiseppe Antonio Mercorella and Seabay Investments.
ASIC alleges Mercorella operated the scheme in breach of the Corporations Act since at least 2002, attracting investors from South Australia primarily, but also from other states in Australia.
The interim orders restrain Mercorella from operating or promoting the scheme; receiving or soliciting any further funds to the scheme; and disposing or dealing with property relating to the scheme.
ASIC alleges that about 40 investors loaned funds to Seabay Investments, which were loaned to Mr Mercorella. Seabay Investments is owed over $20 million by Mr Mercorella.
ASIC also alleges that over the past three years, Mr Mercorella has received loans totalling about $236 million by offering investors interest rates of between 3 per cent and 6 per cent per month.
It is estimated that more than $56 million of these loans are outstanding, with individual investors owed amounts ranging between $50,000 and $8 million.
The matter will return to court on August 8 for a hearing of ASIC's application to appoint Bruce Carter of Ferrier Hodgson as receiver to the assets of Mr Mercorella and the scheme.
ASIC will also seek orders on August 8 appointing John Irving of Sims Partners as liquidator of Seabay Investments. which is suspected of issuing debentures in breach of the Corporations Act since about April 2003.
Mercorella has consented to the interim orders, and agreed not to leave Australia without consent pending the hearing of ASIC's application.
ASIC is calling on anyone who has lent money to Mercorella, either directly or through another person or company, to contact the regulator.
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