More property investment firms collapse
By Darin Tyson-Chan
THE reputation of the property investment industry has received another blow, with news that the AustralianSecurities and Investments Commission (ASIC) has been successful in its application to the Supreme Court of NSW to have a provisional liquidator appointed to wind-up four companies involved in the sector.
Following the regulator’s actions, PKF Chartered Accountants’ John Lord has been appointed by the court as the provisional liquidator of Mortgage Finance Australia, Australian Synergies Group, SS Solutions and Orion Pacific Real Estate.
Difficulties being faced by investors recouping their investments in these companies sparked ASIC’s investigation into Mortgage Finance Australia and its associated companies.
During its examination of the group, the regulator discovered Mortgage Finance had raised over $2 million between June 2001 and May 2002 to fund the construction of a retirement village at Currans Hill in NSW. ASIC also found the developers of the project had been placed into liquidation and that investors had not been able to recover funds invested in the scheme.
Furthermore, the regulator ascertained no persons had held office within Mortgage Finance Australia since May 2005.
ASIC is now seeking final orders to have Mortgage Finance Australia and its associated companies liquidated on “just and equitable” grounds.
The action comes a month after the government agency successfully applied to have liquidators appointed to wind-up Westpoint Corporation for insolvency reasons.
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