Illegal property scheme shutdown
The securities watchdog has obtained court orders against two illegally managed investment schemes associated with property developments known as Varsity Lodge in Ipswitch, Queensland, and Kallangur Mews in Kallangur, Queensland.
The Australian Securities and Investments Commission (ASIC) alleged that between January 2004 and September 2006 the Varsity Lodge scheme and the Kallangur Mews scheme raised over $2.9 million from investors for property development, but were not registered in accordance with the Corporations Act. The Supreme Court of Queensland further declared that the companies were not holding a valid Australian Financial Services Licence.
ASIC alleged that both schemes were promoted through Lifecare Services Australia. The directors at the time included Robert Adcock, Colin Francis and David Stoyakovich.
The property developments included a proposed development of student accommodation in Ipswich and an aged care facility at Kallangur.
The court has ordered that the schemes be wound up and has granted injunctions permanently restraining the respondents from dealing in financial products or carrying on a financial services business.
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