ASIC obtains injunction on property promoters
The Australian Securities and Investments Commission (ASIC) have obtained an injunction in the Federal Court against three firms from promoting a proposed Pilbara property investment that could have contravened the Corporations Act.
Macro Realty Development, and Jamie McIntyre's Property Tuition (21st Century Property) and Educations Holdings (21st Century Education) were marketing and promoting the investment with the tagline "Do you know how to buy Australian property, no money down?".
The proposal involved investors being appointed as directors and shareholders of a company and creating a trust.
The investors were to be paid a director's fee but agreed that Macro would be the sole decision-maker for the company.
ASIC alleges that by agreeing to become a director of a company where Macro will remain the sole decision-maker for all business associated with the company, 21st Century and Macro are counselling and procuring investors to contravene their director's duties under the Corporations Act.
ASIC also alleges the investment documents were misleading and deceptive, and that the investment proposal is a financial product.
The final hearing is set for 26 October where ASIC will ask the Court to make declarations that the defendants contravened the Corporations Act, and for the injunctions to be made permanent.
In August, ASIC alleged that Jamie McIntyre and the 21st Century group were associated with five land banking schemes.
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