The Australian Securities and Investments Commission (ASIC) has obtained orders, by consent, from the Supreme Court of New South Wales that Mr Dominic Luvara pay $230,000 to the liquidators of Australian Investors Forum Pty Limited (in liquidation) (AIF) and $70,000 to the Trustee of AIF Strategic Trust.
The Supreme Court also ordered that Casabanca Pty Limited (Casabanca), a company in the AIF group, be wound up and that Mr Alex Macintosh, of KPMG ,be appointed as the official liquidator.
Mr Luvara was ordered to pay ASIC’s costs.
In addition to the compensation orders, Mr Luvara, of North Curl Curl, NSW gave an undertaking to the court that he would not manage corporations for ten years from 6 August 2004.
Mr Luvara also undertook to the Court that he will provide the liquidator of Casabanca an irrevocable authority to pay all money to which he may be entitled in Casabanca to the liquidators of AIF.
The court orders and undertakings follow ASIC action against AIF, its directors and 22 other companies.
Mr Luvara was a director of AIF, and seven other defendant companies, namely Australian Capital Forum Pty Limited, Sage Global Fund Limited, Suisse Credit Pty Limited, Casabanca Pty Limited, Associated Asset Management Pty Limited, IT Genius Pty Limited, Biotech Securities Limited, and AIF Strategic Management Pty Limited.
AIF was a licensed securities dealer, which ran an investment club offering members placements in new company floats. ASIC alleges approximately $2.5 million was raised for investment in AIF and other defendant companies, in contravention of the fundraising requirements of the Corporations Act.
AIF was placed into liquidation in August 2002 and four of its related companies were placed into liquidation in November 2002.
As a result of Mr Luvara’s undertakings, ASIC has consented to the proceedings against him and Casabanca Pty Limited being dismissed.
ASIC’s proceedings against the remaining defendants including Mr Martin Lloyd-Cocks and Mr Dennis Anthony are being heard by the Supreme Court.
Earlier this month, ASIC obtained an undertaking from Mr Peter Topperwien, a director of AIF, that he will pay $50,000 to the liquidators of Australian Investors Forum Pty Limited (in liquidation).
Mr Topperwien, of Glebe, NSW, had earlier undertaken to the court that he would not manage any Australian corporation for two years from 28 July 2004.