Two unregistered managed investment schemes and three associated companies will be wound up following a Federal Court of Australia order initiated by an Australian Securities and Investments Commission (ASIC) application.
The investment schemes were purportedly linked to the establishment and operation of retirement villages in New South Wales and Western Australia, and had been promoted by GDK Financial Solutions.
The three companies affiliated with these are Windsor Village Management Pty Ltd, The Mews Village Nominees Pty Ltd and Rosedale Village Nominees Pty Ltd.
In the decision handed down by the Honourable Justice Finkelstein, it was found that investors were not told how the money they had contributed was being used, despite numerous requests for information.
Receivers from KordaMentha will be appointed to carry out the closure of the schemes.
Details outlined by Justice Finkelstein about the winding up specify that the receiver will take possession of the relevant land in Western Australia and New South Wales, along with control of the Rosedale business.
ASIC executive director of enforcement directorate Jan Redfern said that it would continue to act in cases where investment schemes do not comply with the law, and to ensure such schemes are wound up “in an appropriate manner”.
