The Australian Securities and Investments Commission (ASIC) today obtained consent orders in the Supreme Court of Queensland closing down an unregistered managed investment scheme, and banning its company director from being involved in the management of a company for three years and permanently banning him from offering financial products or advice.
ASIC alleged that the scheme promoted the investment of money offshore, and that at least $2.2 million was raised from around 200 investors, mostly members of church communities from the Sunshine Coast, Queensland.
The orders were made against Mr Peter Kenneth Urquhart, Wide-I Design Corporation (a company registered in Vanuatu), ETP Ventures Pty Ltd and Cyrus Strategies Pty Ltd (the companies).
Mr Urquhart, who was not a licensed investment adviser, was the sole director of the companies. He offered investment opportunities in schemes including the ‘Car Contributors Club’, ‘Sunshine Coast Housing’, shares in Koitaki Farms Ltd and several bridging loan arrangements through Cyrus Strategies, his investment club.
The money from investors was paid into bank accounts in Vanuatu, where it was invested in other speculative overseas investments including a Fijian resort, a sandstone company in London, shares in an American gold mining company and Spanish gold exploration.
Mr Urquhart consented to being disqualified from managing a corporation for three years. Both Mr Urquhart and the companies have been permanently restrained from carrying on or holding themselves out as carrying on or being involved in the financial market; providing financial services or financial product advice; or carrying on a managed investment scheme in breach of the Corporations Act.
The court appointed Tracey Dare and Philip Hennessey, of KPMG Brisbane, as receivers.
‘People must be extremely careful about schemes that offer high returns or offshore investment. You can do a free check with ASIC to see if the scheme is registered in Australia and the promoter is licensed, by calling 1300 300 630 or logging on to our website at www.fido.asic.gov.au’, ASIC Director Enforcement, Allen Turton said.