The Australian Securities and Investments Commission (ASIC) yesterday obtained final orders in the Supreme Court of Queensland, in Cairns, appointing a liquidator to wind up an unregistered managed investment scheme operated by Drury Management Pty Ltd.

Declarations and orders were also obtained against the directors of Drury Management Pty Ltd, Mr Piet Cornelius Walters and Mr Mark Samuel Evans, as well as Ransom House Pty Ltd, a company also associated with Mr Walters.

The Court declared all four respondents operated an unregistered investment scheme. The Court further declared that Mr Walters, Mr Evans and Drury Management Pty Ltd carried on an investment advice business, securities business and financial services business without a licence or an exemption from being licensed.

The Court also imposed a permanent injunction restraining all respondents from further operating the scheme, receiving or soliciting funds in connection with the scheme, dealing with any property held by them, and destroying or interfering with any of their books and records.

The Court ordered Mr Ian David Jessup, of Jessup and Partners be appointed as liquidator of the scheme, as well as Drury Management Pty Ltd and Ransom House Pty Ltd.

Background

Mr Walters and Mr Evans operated an accounting practice, trading as Drurys, which had offices in Malanda, Atherton and Cairns. From August 1999 to September 2002, they obtained loans from private investors. Investors were guaranteed returns in the range of 12 per cent to 15 per cent per annum. At the time an interim receiver was appointed in September 2002, a total of 118 investors had nearly $8 million invested through Drury Management Pty Ltd. Many investors entered into these unsecured loans by way of Promissory Note and Deed.

Mr Walters was a securities representative for ABN AMRO Morgans Ltd from 30 August 1999 until 28 June 2002.