In the conclusion of action taken by the Australian Securities and Investments Commission (ASIC) against Mr Leslie Reginald Nelson, the Supreme Court of New South Wales today made orders winding up a number of companies formerly managed by Mr Nelson.

Mr Nelson, a Hurstville accountant, was previously the trustee of a number of unit trusts into which about 120 investors, mainly elderly retirees, placed several million dollars over the past decade.

The following companies were involved with the unit trusts and an olive grove project planned by Mr Nelson, and will be wound up:

• Barroin Pty Ltd
• Provest (NSW) Pty Ltd
• Australasian Quality Testing Pty Ltd
• Transline Pty Ltd
• Rural Orchard Management Services Pty Ltd
• Mudgee Property Management Pty Ltd

Mr Andrew Love, of Ferrier Hodgson, was appointed as liquidator of the companies.

On 25 March 2002 the court made declarations that Mr Nelson mislead and deceived the investors into believing their money would be invested in real property mortgages.

In fact the money was used by Mr Nelson to prop up a failing agricultural business he owned and to purchase land in Mudgee to establish and maintain an olive grove project.

The court banned Mr Nelson from managing corporations for life and ordered him to pay $3 million in compensation to a number of unit trusts.