The Australian Securities and Investments Commission (ASIC) has obtained orders, without admissions, from the Supreme Court of New South Wales freezing the assets of Mr Donald Richard Maxwell, Oceanwalk Projects Pty Limited (Oceanwalk Projects), Mr Malcolm Fortune, Central Development Group Pty Limited (Central Development), Procorp Investments Pty Limited (Procorp Investments) and 12 other related companies.
The orders also restrain some of the parties from dealing with assets received from investors.
The above orders extend ex parte orders that were originally made by the Supreme Court on 15 October 2003.
ASIC alleges that the parties have operated a number of unregistered managed investment schemes, including investments in Oceanwalk Projects, Central Development and Procorp Investments or otherwise raised funds illegally from the public, and carried on a financial services business without a licence, in contravention of the Corporations Act.
ASIC also alleges that the parties have engaged in misleading and deceptive conduct in relation to some advertisements placed by Mr Maxwell and other promotional materials for the schemes.
The advertisements sought seed capital investors for Oceanwalk Projects, Central Developments, and Alliance Property, and at various times, included offers of 30 per cent ‘secured and guaranteed’ returns to investors for investments in building construction projects at various locations in New South Wales.
The investments mainly comprised unsecured loans to the developing companies. The promised returns, under the loan agreement, are payable either on a specified date or at completion of the construction project. Approximately $11 million has been raised from investors.
ASIC is concerned that most investors have not been paid their promised returns in accordance with the loan agreement, and has acted to protect investors’ funds.
In addition to the freezing orders, ASIC has, yesterday, obtained orders restraining the parties from:
- carrying on a financial services business without a licence;
- operating an unregistered managed investment scheme;
- making an offer of securities or distributing an application for an offer of securities without a disclosure document; and
- engaging in conduct in relation to financial services which is misleading and deceptive.
The orders further restrain Mr Maxwell, Mr Fortune, Oceanwalk Projects and Central Development from advertising or publishing statements for an offer of securities without a disclosure document.
The matter is before the Supreme Court on 3 November 2003.