ASIC to wind up illegal investment scheme
The Australian Securities and Investments Commission (ASIC) has been ordered by the Government to wind up an illegal investment scheme, VKK Investments Unit Trust, and its trustee and operator, Gem Management Group.
The ASIC investigation found that the VKK scheme was not registered, and its trustee, Gem, did not hold an Australian financial services (AFS) licence. Gem had also breached the Corporations Act by operating an unregistered business.
Around 125 investors had invested a total of $22 million into the VKK scheme on the expectation that its principal asset, land in Keysborough, would be re-zoned, which never occurred.
Deloitte Touche Tohmatsu’s Robert Woods and Salvatore Algeri were appointed as joint liquidators of Gem and the VKK scheme.
ASIC’s deputy chair, Peter Kell, said the ruling was a warning to those involved in unlawful schemes, including those that involve land banking, that ASIC would move to protect investors and have these schemes wound up.
"Land banking schemes have been a particular focus of ASIC. ASIC reminds investors considering investing in land banking schemes they are often unregulated and that investors have little protection if something goes wrong", said Kell.
AUTHOR
Anastasia Santoreneos
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