Final two companies in Dollarforce Group wound up
The Australian Securities and Investments Commission (ASIC) yesterday obtained Federal Court orders to wind up the two remaining companies in the failed Victorian property investment scheme Dollarforce Group, following similar action against six other companies within the group last month.
In April ASIC obtained Federal Court orders for six companies within the Dollarforce Group to be wound up. Orders were made for the winding up of the two remaining companies, Companies Retail Treasury Pty Ltd and Elite Wealth Builders Pty Ltd, and Deloitte was appointed as the liquidator
Injunctions were also extended against Clestus Weerappah and Andrea Hawkins, who controlled entities within the Dollarforce Group. Weerappah and Hawkins are restricted from applying for passports or departing Australia for the next six and three months respectively, and the two are also restrained from disposing of their assets.
As reported by Money Management earlier this year, a number of financial advisers allegedly advised clients to take out reverse mortgage loans to invest in the failed property investment scheme, the assets of which have been frozen by ASIC.
Slater and Gordon has launched a class action against the Dollarforce Group on behalf of 80 investors, and the firm’s practice group leader, Van Moulis, said some investments could be sourced to advisers.
Many investors are understood to have taken out reverse mortgages to finance their investments in Dollarforce, taking out structured loans they believed would deliver returns of between 10 and 14 per cent.
Recommended for you
As advisers risk losing two-thirds of FUA during the $3.5 trillion wealth transfer, two co-founders underscore why fostering trust with the next generation is vital to retaining intergenerational wealth.
As advisers seek greater insights into FSCP determinations, what are the various options considered by the panel and can a decision be appealed?
Amid the current financial adviser shortage, advice firm Link Wealth is looking to expand its financial literacy program for high school students across the country.
TAL Risk Academy has updated its range of ethics courses to help financial advisers meet their CPD requirements following adviser feedback, including interpreting FSCP determinations.
