The Australian Securities and Investments Commission (ASIC) obtained injunctions in the Supreme Court of New South Wales on 17 April 2008 restraining the activities of two companies and individuals that ASIC believes have raised funds in breach of the Corporations Act.

The action against Strategic Alternative Investments Pty Ltd, Mr Krishnan Rasaratnam, Ms Menaka Rasaratnam, Mr Manickan Rasaratnam and Colombo Business Services Pty Ltd follows allegations by ASIC that approximately 35 Australian and overseas investors paid significant funds into accounts held with the Commonwealth Bank of Australia, ANZ and HSBC Bank Australia Limited.

ASIC has also applied to the Court to wind up Strategic Alternative Investments Pty Ltd.

ASIC is concerned that the company, its directors and associates do not hold the necessary Australian financial services licence and that investors were provided with information and assurances that were misleading and deceptive.

As a result of these concerns, ASIC applied to the Supreme Court and sought injunctions and orders to prevent any further fundraising and the dissipation of assets, as well as orders that Mr Manickan Rasaratnam and Mr Krishnan Rasaratnam surrender their passports to the Supreme Court.

The matter returns to Sydney’s Supreme Court on 28 April 2008.

ASIC’s investigations are continuing.

Editor's note:

On 28 April 2008, the Supreme Court ordered that Mr Manickan Rasaratnam may sell three properties on condition that the proceeds of the sales, minus amounts representing the mortgages and sale costs, be paid into an account in Mr Rasaratnam's name, the third party bank accounts are unfrozen, and that Mr Krishnan Rasaratnam, Strategic Alternative Investments Pty Ltd and Ms Menaka Rasaratnam have until the afternoon of 30 April 2008 to file their affidavits of assets and liabilities. The orders were made by consent. The matter returns to Court on 4 August 2008 for further directions.