ASIC kills scheme that owes investors millions
An Adelaide-based managed investment scheme that allegedly owes at least 78 investors a whopping $56 million has been placed in receivership by order of the Federal Court.
The Australian Securities and Investments Commission (ASIC) obtained the order against the scheme as part of its 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.
Mercorella of Rosslyn Park, South Australia, consented to the federal court orders appointing Colin Nicol of McGrathNicol & Partners as receiver to his assets; and liquidator of the scheme he operated.
The orders also prevent him from promoting or operating the managed investment scheme, and from leaving Australia without the consent of ASIC until the liquidator of the scheme has ceased to act.
ASIC alleges that over the past three years Mercorella 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.
ASIC is also seeking an order to appoint a liquidator to Seabay Investments, which Mercorella owes $20 million. ASIC also alleged that Seabay had been offering debentures in breach of regulation since 2003.
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