The Federal Court has appointed joint liquidators Mr Shaun Fraser and Mr James Thackray, of McGrath Nicol to wind up the unregistered managed investment scheme operated by Lake Coogee Estate Management Pty Ltd (LCEM), Citibond Finance & Investments Pty Ltd (Citibond) and ALB Developments No 1 Pty Ltd (ALB) in Perth, following an application by ASIC.

Winding up orders previously made by the Court on 11 May 2007 and approved by a majority of the scheme's investors, permitted LCEM to continue with the scheme development until completion on the condition that Mr Fraser act as supervising accountant. Since then, Mr Fraser has reported on the scheme’s progress to the Court and ASIC. Most recently he reported that the scheme had become insolvent and consequently secured creditors had taken possession of ALB's land, one of the scheme's main assets.

Because the scheme development was unlikely to be completed as originally contemplated, ASIC applied to the Court for the appointment of liquidators to manage the final and orderly winding up of the scheme.