The Australian Securities and Investments Commission has placed a final stop order on a prospectus issued by Greenwood Property Development Fund Limited.
Greenwood lodged a prospectus with ASIC on November 11, 2005 seeking to raise up to $10 million to fund property development in coastal and waterfront projects throughout Australia and was primarily promoted through offshore investment seminars by chief executive Jeffrey D’Arcy, and directors of Greenwood.
The final order follows two interim stop orders and prevents any offers, issues, sales or transfers of securities being made.
Greenwood consented to the order after failing to address ASIC’s concerns that its prospectus may have contained misleading or deceptive statements on, among other matters, forecasts of future returns and the identification of property development opportunities.
On Greenwood’s website, the fund promised a 19% investment return per annum on a short term 18 months investment.
The fund was seeking to raise capital to fund an apartment project on a 5027 sqm site at Bowen, just south of Airlie Beach in North Queensland, Australia.
The Bowen Breeze apartment development was to include 35 ocean view apartments, located at 22 Rose Bay Road, Bowen.
ASIC’s executive director of compliance Jennifer O’Donnell said ASIC continues to focus on the promotion of high-risk, high-return, investment products financing property development.
“Where directors offering these products include prospective financial information such as forecasts and projections, they have an obligation to ensure they have a reasonable basis for making the projections,” she added.
By Nelson Yap
