The Australian Securities and Investments Commission (ASIC) has obtained declarations and orders in the Supreme Court of New South Wales against James Hutchings and Terrence Tindall, in relation to the activities of the former Hutchings and Tindall Partnership which operated from 1998 until late 2000.
The men were also banned from being involved in the management of a company for life, with the right to apply for a variation of this order after five years.
On 30 January 2001 ASIC obtained interlocutory orders restraining Messrs Hutchings and Tindall from any further fundraising, and appointing a receiver over the assets of the Partnership and the alleged managed investment scheme.
The court found that both James Hutchings and Terrence Tindall had conducted a managed investment scheme that had more than 20 members and was not registered as required under the Corporations Law.
Messrs Hutchings and Tindall obtained over $14 million from investors after promising them high interest rates of between 30 and 50 per cent per annum. It appears that more than $13.5 million of the funds they received have been lost.
In disqualifying the men from being involved in the management of a company, Justice Windeyer said that the order was made for the protection of the community, as there was a risk the men may use the corporate veil to engage in activities bringing harm to members of the public.
Both men have applied for a variation of the banning order prior to it coming into effect, and the matter will be heard on 6 August 2001.
The court also made declarations that Messrs Hutchings and Tindall had contravened a number of other sections of the Corporations Law including that they had carried on a securities, investment advice, futures broking and futures advice business without a licence.
Alexander Macintosh of KPMG was appointed receiver over the business of Hutchings and Tindall Partnership including all money provided to Messrs Hutchings and Tindall under the managed investment scheme.
ASIC's enquiries into this matter are continuing.