THE Australian Securities and Investments Commission has obtained interim freezing orders to restrain Michael Kyriackou and six companies associated with him from disposing of any assets.
Yesterday, Justice Middleton of the Federal Court granted the freezing orders to the companies Australvic Property Management Pty Ltd; M K River Pty Ltd; Australvic Home Loans Pty Ltd; Australvic Construction Services Pty Ltd; Australvic Finance Pty Ltd and Australvic Property Management No. 2 Pty Ltd.
The freezing order will prevent Kyriackou and the companies from parting disposing of their assets, destroying and altering their books of account.
These freezing orders will remain in place until June 13, 2007, on which date the Federal Court will hear ASIC’s application to have a provisional liquidator appointed to the companies and the winding up of a suspected managed investment scheme operated by the companies.
The orders follow an investigation by ASIC into Kyriackou and the companies earlier this month. The regulator commenced the proceedings after receiving complaints alleging that returns on money leant to or invested with Kyriackou and/or the companies had not been paid.
At this stage, ASIC believes that approximately $6 million has been invested in the alleged scheme.
The regulator told the court, it suspects that Kyriackou may have misused funds raised by the companies as part of a suspected unregistered managed investment scheme.
ASIC also has a number of other concerns relating to the operation and solvency of the companies.
ASIC did not comment further as an investigation is continuing.
Australian Property Journal