ASIC moves against failed land developer
The Australian Securities and Investments Commission (ASIC) has moved to remove administrators Hall Chadwick Chartered Accountants from failed land banking company Midland HWY Pty Ltd, after it found they were appointed without notifying many investors.
Midland HWY was the developer of a failed land banking scheme known as Hermitage Bendigo (previously Acacia Banks) located just outside of Bendigo in Victoria.
Hundreds of mum and dad investors lost millions of dollars under the scheme.
Midland HWY appointed PPB Advisory as joint administrators in July after it was placed into voluntary administration.
But Midland HWY replaced PPB Advisory with Hall Chadwick Chartered Accountants as administrators on 14 July.
ASIC has started proceedings in the Federal Court in Victoria against David Ross and Richard Albarran from Hall Chadwick, and Midland HWY to remove them as administrators or to nullify the first meeting of its creditors held on 14 July.
"ASIC is concerned that the appointment of Messrs Ross and Albarran, as replacement administrators to Midland HWY, occurred in circumstances where many investors in Hermitage Bendigo, who may also be creditors, were not given notice of the first meeting of creditors," ASIC said.
The hearing is set for today.
AUTHOR
Malavika Santhebennur
Recommended for you
ASIC believes advice licensees are the “first line of defence” when it comes to future product failures and is urging them to monitor their approved product lists.
Assistant Treasurer, Daniel Mulino, is keen to progress the second tranche of DBFO reforms, acknowledging it is hard for advisers to get the full picture of the legislation without both parts.
A professional year supervisor has been banned for five years after advice provided by his provisional relevant provider was deemed to be inappropriate, the first time this is believed to have occurred.
Pinnacle Investment Management has made a strategic investment in private capital investment firm FinCap to support a new managed accounts platform.
