The Australian Securities and Investments Commission (ASIC) has permanently banned Mr Leslie Reginald Nelson, an accountant from Hurstville in Sydney, from dealing in securities or giving investment advice.

ASIC made the banning following earlier action relating to Mr Nelson’s conduct as the trustee of a number of unit trusts into which about 120 investors, mainly elderly retirees, placed approximately $3.7 million.

ASIC’s investigation found that Mr Nelson misled and deceived investors into believing that the money would be invested in real property mortgages. In fact, the money was used by Mr Nelson to prop up a failing agricultural business and to purchase land in Mudgee to establish and maintain an olive grove project.

In March 2002, ASIC obtained orders against Mr Nelson in the Supreme Court of New South Wales, banning him from managing corporations for life, and ordering him to pay $3 million compensation to a number of the unit trusts.

The Court declared that Mr Nelson had breached his duties as a director of the trustee companies, as well as number of other companies that owned and operated the olive project.

In May 2002, following an application by ASIC, the Supreme Court of NSW made orders to wind up the following companies, with Mr Andrew Love of Ferrier Hodgson, appointed liquidator:

• 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.