First Foundation frozen following ASIC investigation

First Foundation Developments and its senior employees will have $1.8 million assets frozen for running an alleged unregistered managed investment scheme.

The interim orders, made by the Supreme Court of Queensland, apply to the company’s director, David Elliott Kennedy, and Robert Alan L’Hoir.

This follows an application by theAustralian Securities and Investments Commission(ASIC), after it investigated the company’s offer of securities in the investment scheme.

First Foundation Developments are accused of raising around $2.2 million public money between October 2002 and April 2003, allegedly to finance various Gold Coast property developments.

The firm has allegedly not lodged a disclosure document with ASIC, as required under the Corporations Act, has not registered its managed investment scheme, and is operating a financial services business without currently holding an Australian Financial Services Licence.

Further orders have been made by ASIC over operation of the scheme, and conduct of the securities or investment advice business. It has also appointed a liquidator and receiver to the scheme.

The interim orders also restrain disposing of or dealing with certain funds and bank accounts until the final hearing of ASIC's application in Brisbane, 5 June.