Illegal promoter faces justice
The promoter of illegal property schemes that sought capital from investors has been ordered to pay more than $1 million in compensation and banned from ever operating a company again.
Donald Maxwell, the principal promoter of the failed ProCorp Investments and Central Development group of companies, was also permanently disqualified from providing financial services.
One ProCorp director, Malcom Fortune, was also banned for 12 years and ordered to pay penalties of $250,000.
The property investments promised returns of 30 per cent per annum and were described as ‘secure and guaranteed’ but were mostly only unsecured loans.
The ProCorp Investments group subsequently collapsed in 2004 with debts of $10.8 million owing to 120 seed capital investors along with the fall of the Central Development group, which left 32 investors facing losses of $3.3 million.
In addition to the disqualification orders against Maxwell and Fortune, the NSW Supreme Court made orders disqualifying the directors of both the ProCorp and Central Development group of companies.
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