The Australian Securities and Investment Commission (ASIC) has moved on a case involving two investment companies channeling about $2.7 million of West Australian investors’ money into companies developing hangover cures and an adhesive film for glass that made it bulletproof.
ASIC found that Chase Capital Management and Leadenhall Funds Management (neither of which are connected to the financial services conglomerate of a similar name) had set up the scheme and used the investors’ money illegally, as no prospectus had been lodged to ASIC or made available to investors.
Louis Nilant, a representative of accountants Clout and Associates, has been appointed liquidator by Justice Owen of the Supreme Court of Western Australia to the two companies, which are allegedly registered in the Carribean and the Isle of Man.
The investment schemes had apparently other offshore links as US$1.375 million of the West Australian investors’ money has been paid to entities operating businesses in Lagos, Nigeria.
Nilant will also be presiding as liquidator over schemes run by the investment companies deemed illegal, promoted by David Llewelyn Hicks, Irene Anne Percy and Jamie Jo Sims.
The securities watchdog called on the liquidator to terminate the investor schemes and have investor interests determined and converted into cash.
ASIC alleges that the promotional material produced by the investment companies estimating returns of up to 25 per cent were misleading and without basis.
